PT Petrindo Jaya Kreasi Tbk (CUAN) has finalized an acquisition of a stake equalling 19.74% in PT Singaraja Putra Tbk, or SINI, according to reports in Indonesia from Bloomberg and IDN Financials.
The shares, according to the outlets, were acquired through CUAN’s subsidiaries and affiliated entities, resulting in total indirect ownership of close to 20% in SINI. The transaction marks CUAN’s initial entry into SINI’s equity structure and forms the basis for continued engagement with the company’s existing controlling shareholders.
Management has already begun talks to evaluate terms for a potential follow-on transaction, including transaction structure, valuation parameters, and execution timeline, turning its minority stake into a place as the controlling shareholder.
CUAN plans to acquire at least 51% of SINI, the reports said, and that any transaction leading to a change in control would be subject to Indonesia’s capital market regulations.
Based on the latest public disclosures and according to IDN Financials, public shareholders currently own approximately 44.78% of SINI’s outstanding shares.
CUAN already had stated that any proposed transaction forms part of its long-term business strategy to strengthen its asset base and broaden its footprint across mining as well as the mining services value chain. It is aiming to evolve into an integrated mining group over time.
Discussions are still ongoing regarding any potential further transaction, the outlets noted.
Source: CUAN Acquires 19.74% SINI Stake to Expand Mining Operations