PT Merdeka Battery Materials Tbk (MBMA) announced that it has entered into a conditional agreement to acquire a 60% interest in PT Huaneng Metal Industry (HNMI), a high grade nickel matte conversion facility located within the Indonesia Morowali Industrial Park (IMIP). HNMI was built and commissioned by Eternal Tsingshan Group Limited (Tsingshan) and has been in stable production since 2022. HNMI processes low grade matte nickel (LGNM) produced by the RKEF smelter, reducing the iron content, to produce HGNM containing more than 70% nickel.
"Total consideration for the proposed acquisition is approximately US$ 75 million for MBMA to hold a 60% stake in HNMI, with the Tsingshan subsidiary holding the remaining 40%," explained MBMA's management in an official statement, Monday (8/5/2023). According to them, the acquisition will enable MBMA to transition RKEF's larger asset base to class 1 nickel production and unlock value. The Proposed Acquisition is targeted for completion in mid-2023, subject to completing the usual terms for such a transaction.
As is known, Merdeka Battery just listed its shares on the Indonesia Stock Exchange (IDX) on April 18, 2023. Previously, MBMA had completed its initial public offering (IPO) with an exercise price of IDR 795 per share. The total shares released through the IPO were 11,549,999,900 new shares. MBMA raised funds of around IDR 9.2 trillion.
Source: https://investor.id/market/328838/merdeka-battery-mbma-akuisisi-60-saham-perusahaan-ini
