Indika Capital bought 2.62 million shares, equivalent to a 15 per cent stake in MTU, from Prime Empire Investment. The total consideration for the transaction, completed on July 17, was $9.9 million.
Following the acquisition, Indika Energy owns 100 per cent of MTU. It previously held an 85 per cent stake through a subsidiary, Indika Indonesia Resources.
Indika Energy had acquired MTU, along with the marketing rights for its coal production, in March 2012 for $132 million, according to local media reports. The seller was International Coal Trading Limited.
MTU is a third-generation coal contract of work (CCoW) that owns high-rank bituminous thermal and coking coal located in Central Kalimantan Province, according to Indika Energy’s website. Its total concession area is 24,970 hectares.
MTU has developed coal hauling roads with a capacity of 3 million tons per year and a barge port with a capacity of 5 million tons per year. The company started its first production in October 2016 and produced a total of 1.2 million tons of coal in 2018.
According to Indika Energy’s Q1 2019 report, MTU had a total asset value of $69.4 million.