State-owned gold miner Aneka Tambang (Antam), through its subsidiary Gag Nikel (PTGN), has acquired a 30 percent stake in Newton International Investment Pte. Ltd. (NII), a subsidiary of China’s Eternal Tsingshan Group Limited (ETGL), for USD 102.5 million (IDR 1.60 trillion). NII holds shares in Jiu Long Metal Industry (JLMI), a nickel smelting company based in Central Halmahera, North Maluku.
Tsingshan Group is a global stainless steel giant with operations worldwide, including Indonesia, where it operates several smelting facilities. JLMI is a part of the Tsingshan Group and owns nickel smelting facilities in Central Halmahera.
The transaction was completed on Oct. 3, following the conditional sale and purchase agreement (CSPA) signed between PTGN and NII on May 3. With this acquisition, PTGN now owns 30 percent of JLMI, while NII retains the remaining 70 percent.
The acquisition aligns with the government’s downstream policy aimed at increasing the financial performance of local companies and generating added value for shareholders.
"The implementation is also expected to support the Indonesian government’s efforts in developing the national electric vehicle ecosystem," Antam's management said in an official statement on Monday.
On May 3, PTGN also signed an ore supply agreement with another Tsingshan Group subsidiary, Universal Metal Trading (UMT). Under this agreement, PTGN will supply nickel to UMT, with UMT making an upfront payment for a portion of the nickel provided. PTGN plans to use this payment to fund its purchase of NII’s shares in JLMI.
Following PTGN’s acquisition of 30 percent of JLMI on Oct. 3, PTGN extended a shareholder loan of USD 18 million to JLMI. NII had previously provided JLMI with a shareholder loan of USD 60 million prior to PTGN’s share purchase.
Both loans are proportional to each entity’s stake in JLMI, with the funds expected to boost JLMI’s operational capacity and drive revenue, enabling the company to distribute dividends to PTGN, and subsequently to Antam.
"The shareholder loan from PTGN is expected to generate indirect income for Antam through interest payments from JLMI to PTGN," Antam's management stated.
JLMI plans to use the shareholder loan to enhance its operations, boosting revenue to eventually pay dividends to PTGN, which will in turn flow to Antam.
