Indonesias Saratoga Sells Merdeka Copper Shares for US$14M

Private equity firm, PT Saratoga Investama Sedaya Tbk (IDX: SRTG), has sold 131.90 million shares of PT Merdeka Copper Gold Tbk (IDX: MDKA) with worth of Rp213.69 billion (US$14.54 million) – Photo by the Company

JAKARTA (TheInsiderStories)Private equity firm, PT Saratoga Investama Sedaya Tbk (IDX: SRTG), reported has sold 131.90 million shares of PT Merdeka Copper Gold Tbk (IDX: MDKA) with worth of Rp213.69 billion (US$14.54 million). The parent divested the miner shares at Rp1,620 a unit.

After the divestment, the company controlled by Edwin Soeryadjaja and Sandiaga Salahuddin Uno, holds 4.19 billion shares of the unit or represents 19.13 percent paid up and enlarged capital. Last year, the subsidiaryhas split its shares with a ratio 1: 5. Currently, total shares of the company around 14.33 billion shares.

President Director of Merdeka Copper, Tri Boewono, said the stock split program aimed to boost the number of stocks and to adds retail investor numbers. While, last month thegold miner announcedto release local bonds Rp300 billion for working capital needs. The bonds consist of two series with tenure 367 days and five years.

At the end of July 2020, the issuer distributed bond of Rp1.4 trillion to repay part of the principal amount of debt under the $100 million facility agreement helped by PT Indo Premier Sekuritas, PT CIMB Niaga Sekuritas, and PT Sucor Sekuritas. He said, theproceeds will uses for working capital of the company or other business entities.

Merdeka Copper said, the company will conduct a public offering on Sept. 4 and 7 with a target of listing in the Indonesia Stock Exchange (IDX) on Sept. 10. The issuer has obtained idA or Single A rating from PT Pemeringkat Efek Indonesia for the bond issuances.

In the first semester (1H) of 2020, the miner net profit dropped 9.43 percent to $38.26 million compared to last yearof $45.25 million.The revenues slightly up by 3.67 percent to $198.81 million in the 1H of 2020 from previously $191.77 million.

The producerhas mining business license of 4,998 hectares and 6,623 hectares. According to a study conducted by the company, the existing mines could be exploited up to 25 years with the estimates potential ore reserves of 1.9 billion tons.

Based on the company data, the shareholders of the company are Saratoga, PT Mitra Daya Mustika 14.16 percent, Garibaldi Thohir 8.76 percent, PT Suwarna Arta Mandiri 7.04 percent, Regency of Banyuwangi 5.50 percent, and the rest hold by public.

in 2017, together with its holding, the company has take over assets of Australian copper miner Finders Resources Ltds (ASX: FND) in Indonesia, for an estimated value of $177 million.Finders runs Wetar copper and Ojolali gold-silver projects in Indonesia.

The Ojolali project is located in Lampung Province, near the southern tip of Sumatra, as part of the highly-productive Sumatran Gold Belt, which includes Martarbe, Lebong Donok, Lebong Tandai, Pongkor, and Way Linggo deposits.

Wetar Copper Project is located far away, on the north-central coast of Wetar Island, of the Maluku Barat Daya Regency, Maluku Province.Finders holds a 95 percent stake in Wetar Copper in Maluku Province, engaged in a high-quality copper mine concession with JORC-compliant resources of 200,000 tons of copper (as of 2013).

Established in 1998, Saratogais an active investment company in Indonesia. Some of its investment portfolios include PT Adaro Energy Tbk (IDX: ADRO) which was first invested in 2002. Then PT Aneka Gas Industri Tbk (IDX: AGII), which started to become the new portfolio in 2018.

In the infrastructure sector there are Tower Bersama Group and PT Nusa Raya Cipta Tbk which are engaged in the toll road business. Apart from Adaro and Merdeka Copper, Saratoga has also invested in Interra Resources since 2014, PT Provident Agro Tbk (IDX: PALM) since 2012 and Sihayo Gold Limited since 2012.

US$1: Rp14,700