PT Delta Dunia Makmur Tbk (DOID), through its subsidiary PT Bukit Makmur Internasional (BUMA International), has acquired shares in the Australian Dawson Complex coal mine worth US$455 million or IDR 7.2 trillion.
More specifically, BUMA International entered into a binding agreement with Peabody Energy Corporation (Peabody), through its subsidiary Peabody SMC Pty. Ltd., to acquire a 51% stake in the Dawson Complex (Dawson).
The President Director of Delta Dunia Group, Ronald Sutardja, stated that this move strengthens the company’s position in the global metallurgical coal market and follows our recent acquisition of Atlantic Carbon Group Inc (ACG). This step further realizes our multi-year strategic plan to diversify the company as a leading coal producer.
“The Dawson Complex will support our ambitions to drive long-term growth and strengthen our role as a key player in the industry,” said Ronald, as quoted from the official statement on Tuesday (November 26, 2024).
With this action, BUMA International officially becomes the controlling entity of one of the largest metallurgical coal mines in Australia. It is known that Dawson was part of the Steelmaking Coal portfolio of Anglo American, which was sold to Peabody under a separate sale agreement following a competitive sales process.
BUMA International will finance Peabody for the acquisition of Dawson, and Peabody will transfer the Dawson Complex to BUMA International upon completion of the transaction with Anglo American, provided that the pre-emptive rights process related to Dawson and other conditions have been fulfilled. These agreements were signed on November 25, 2024.
The acquisition will be carried out through a newly established entity in Australia. Completion of the acquisition is subject to the fulfillment of all agreed-upon conditions between Peabody and BUMA International, with the target completion set for 2025.
BUMA will fund this acquisition from the Group's cash reserves. In addition to cash, the company will also utilize a syndicated bank facility and a guarantee facility for rehabilitation obligations.
The acquisition cost consists of an upfront cash payment of USD 355 million and USD 100 million in cash to be paid over a period of up to four years after the transaction is completed.
