Delta Dunia Makmur (DOID) Completes Mine Acquisition in Australia

PT Delta Dunia Makmur Tbk.  Photo: Company.

PT Delta Dunia Makmur Tbk (DOID) through its subsidiary, PT Bukit Makmur Mandiri Utama (BUMA), has completed the acquisition of the Open Cut Mining East business from Downer EDI Ltd from Australia.The acquisition cost up to Aus$139 million or the equivalent of US$99 million.

Based on an official statement, Monday (12/20), the corporate action was completed on 17 December 2021 by BUMA’s subsidiary, BUMA Australia Pty Ltd.BUMA is listed as the 100% holder of BUMA Australia.Meanwhile, BUMA is a subsidiary of Delta Dunia Makmur with 99.99% ownership.

Furthermore, Delta Dunia management said that the transaction value issued by the company represents a discount from the book value of Aus$ 200 million.This business action is fully funded by a loan facility from Bank Mandiri, the withdrawal of which has been carried out in July 2021.

Downer EDI Limited’s coal mine, namely Mining East, has a business segment that includes a highly experienced and successful management team in Australia, which will complement the capabilities of BUMA and the company.It will also further strengthen the company’s book contracts, with the addition of Tier 1 clients.

Mining East has a production capacity of approximately 160 million bcm for overburden removal, of which approximately 130 million bcm has been contracted and 10.5 million tons of coal is used to serve thermal andcokingcoal concessions.

Mining East’s portfolio consists of four mine sites in Queensland owned by world class customers.In recent years, Mining East has recorded annual revenues of around A$510 million.Mining East is also exploring various projects that can support the growth of the business in the future.

The completion of the transaction marks BUMA’s entry into thecokingcoal industry,which will be BUMA’s first step in diversifying and expanding outside of Indonesia.

The company’s management believes that this business action will encourage BUMA and the company to explore potential mining projects in the future, both in Indonesia and in Australia.This transaction will add value and increase the opportunities for the company’s business group to seize opportunities and grow.

Previously,Downer’sChief Executive Officer(CEO) Grant Fenn said, this transaction process includes the transfer of assets, liabilities, employees, and contracts from Open Cut Mining East to BUMA.In this transaction, Downer will receive approximately Aus$150 million in cash and BUMA has already paid Aus$16 million.

In the transaction, BUMA will own 90% of Open Cut Mining East’s shares.Meanwhile, the remaining 10% is controlled by AGDM Investments Pty Ltd.The acquisition process is expected to be completed before the end of 2021.