Astrindo Acquires Hong Kong's PTT Mining Ltd for US$471 Million

TheIndonesia.co - An investment issuer that focuses on integrated energy infrastructure PT Astrindo Nusantara Infrastruktur Tbk (BIPI) acquired Hong Kong's PTT Mining Ltd for US$471 million or around Rp7 trillion (exchange rate of Rp14,880 per US dollar). PTT Mining Ltd Hong Kong currently has several coal mining concessions in Brunei Darussalam, Madagascar, and three coal mines in Kalimantan, Indonesia.

"The acquisition of PTTML has a very good opportunity given the current coal price. However, our intention to buy coal mines started long before the recent price spike," said Astrindo President Director Ray Anthony Gerungan in a statement in Jakarta, Tuesday, August 2, 2022.

Gerungan said that the volatility of coal prices has nothing to do with Astrindo's long-term strategy which will focus more on creating an efficient and best-in-class infrastructure platform in reducing carbon emissions from transportation and logistics. "We look forward to expanding this platform towards a carbon neutral industry. Integrated coal mining operations, from mining to efficient coal port infrastructure, help us realize our future plans," said Gerungan.

Astrindo Director Michael Wong said the direct impact of the acquisition was enormous. The company's financial performance in 2022 will show a sharp increase in line with the increase in coal prices.

"Furthermore, Astrindo has prepared strategic steps to improve financial and operational performance this year, by continuously increasing our competitive advantage and opening up development opportunities within the integrated energy infrastructure sector," said Wong.

Meanwhile, PTT President and Chief Executive Officer Auttapol Rerkpiboon said PTT's board of directors approved the sale of PTT International Holdings Limited, a wholly-owned subsidiary of PTT, of its entire investment, to 100 percent of the total issued shares, in PTTML to Astrindo.

"The divestment of the coal business is in line with PTT's strategy towards sustainability and clean energy as well as the company's new vision, namely "Powering Life with Future Energy and Beyond"," said Rerkpiboon.