PT Harum Energy Tbk (HRUM) and its subsidiary, PT Harum Nickel Industry (HNI), officially became the majority shareholder of PT Westrong Metal Industry (WMI), a nickel smelter company in Weda Bay Industrial Park, North Maluku.
The acquisition was marked by the purchase of 1,214,000 WMI shares previously owned by Prime Investment Capital Limited (PICL) and Walsin Singapore Pte Ltd (WS).
The acquisition represents 60.7% of the total issued and paid-up capital of WMI, with a transaction value of USD 215.21 million or approximately IDR 3.4 trillion (assuming an exchange rate of IDR 15,828).
The result of this acquisition is that HNI's ownership in WMI increased from 20% to 80.7%, and HRUM, through HNI, became the majority shareholder of WMI.
Ray A. Gunara, CEO of PT Harum Energy Tbk, revealed that WMI operates four electric rotary kilns with supporting infrastructure and converter facilities, which provide high-quality nickel-matte production.
"The installed annual production capacity is approximately 56,000 tons of nickel contained in high-grade products," Ray said during a disclosure session on the Indonesia Stock Exchange (IDX) on Tuesday (30/1/2024).
The current WMI construction project, he said, is in its final stages and expected to commence commercial operations in the second quarter of 2024. The acquisition will hopefully support the company's diversification strategy.
"With WMI coming into operation soon, the company will have a more diverse product portfolio. We hope that WMI's high-grade nickel-matte products will bring added value to the company's nickel products," he said.
After the deal is completed, WMI's financial statements, including its balance sheet and income statement, will be integrated into HRUM's main financial statements.
He expects the financial statements will reflect the contribution of WMI's financial performance, both through the increase in the company's shareholding through HNI and the consolidation of WMI's financial results.
Image source: Suara.com
