Astrindo Nusantara (BIPI) Acquires Hong Kong PTT Mining Worth IDR 6.97 Trillion

03 Aug 2022


Coal infrastructure company, PT Astrindo Nusantara Infrastuktur Tbk. (BIPI) has just acquired Hong Kong PTT Mining Ltd for US$471 million or Rp6.97 trillion (Rp14,800 per US$). Ray Anthony Gerungan as President Director of Astrindo said the acquisition with PTT Mining, which owns several coal mining concessions in Kalimantan, is a good opportunity at this time. "Our intention to purchase coal mines began long before the recent price spike," Ray said in a public statement on Tuesday (2/8/2022).

According to him, the volatility of coal prices is not related to Astrindo`s long-term strategy which focuses on creating an efficient infrastructure platform and reducing carbon emissions from transportation and logistics. In addition to infrastructure, BIPI also plans to build a carbon neutral industry with integrated coal mining operations. Meanwhile, Director of Astrindo Michael Wong explained that the direct impact of the acquisition will boost financial performance this year in line with the increase in coal prices. "Astrindo is currently considering offers from trusted financial and investment institutions so that the coal mine in question can eventually operate on a carbon neutral basis," he concluded.

Meanwhile, PTT Mining's President and Chief Executive Officer, Auttapol Rerkpiboon said, all directors approved the acquisition in line with the company's new vision. "The divestment of the coal business is in line with the strategy towards sustainability and clean energy," he said. For information, PTT Mining Ltd Hong Kong not only has coal mining concessions in Kalimantan but also in several other countries such as Brunei Darussalam and Madagascar. The parent of PTT Mining, PTT Public Company Limited is based in Thailand and is engaged in natural gas operations, gas transmission, infrastructure business to international trade. This year, BIPI will still focus on managing long-term infrastructure assets and mining expansion of coal mine sites, either by building their own or through acquisitions. In the first trading session of the Indonesia Stock Exchange (IDX) today, Tuesday (2/8/2022), BIPI's shares were observed to be parked in the red zone, which was valued at Rp. 212, down 5.36 percent or 12 points. On a year-to-date basis (ytd), the stock with a market capitalization of IDR 10.83 trillion rose 324 percent from its initial position at the level of IDR 50 per share.


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