PTT Mining of Hong Kong (PTTML) owns coal concessions in Brunei Darussalam, Madagascar and three coal mines in Kalimantan, Indonesia
Astrindo to acquire PTTM. (Credit: PT Astrindo Nusantara Infrastruktur Tbk)
Indonesian investment company Astrindo Nusantara Infrastruktur (Astrindo) is set to acquire PTT Mining of Hong Kong (PTTML) in a transaction valued at $471m.
PTTML currently owns coal concessions in Brunei Darussalam, Madagascar and three coal mines in Kalimantan, Indonesia.
PTT International Holdings (PTTIH), a wholly-owned subsidiary of PTT, will divest its entire investment, 100% of the total issued shares in PTTML to Astrindo.
The sale of the coal business, approved by the PTT’s Board of Directors, is believed to complement the company’s sustainability and clean energy strategy.
Astrindo president director Ray Anthony Gerungan said: “The acquisition of PTTML appears opportunistic given the current prices of global coal. But our intention to buy coal mines started well before the recent surge in prices.”
Astrindo is an investment company focused on integrated energy infrastructure that owns and operates infrastructure through its subsidiaries.
The firm is focused on creating an effective infrastructure platform for reducing emissions from transportation and logistics, and expanding it towards carbon-neutral industries.
In addition, its long-term strategy is not affected by the current fluctuations in coal prices, said the company.
Astrindo intends to improve its financial and operational performance this year, through development opportunities in the integrated energy infrastructure sector.
Astrindo director Michael Wong said: “The immediate impact of the acquisition of PTTML to Astrindo is substantial. Our financial performance in 2022 will show a significant jump given the current price of coal.”