The Financial Services Authority (OJK) is currently reviewing the plan by PT Adaro Energy Indonesia (ADRO) to divest its entire stake in PT Adaro Andalan Indonesia (AAI).
Inarno Djajadi, Chief Executive of Capital Market Supervision, Derivatives, and Carbon Exchange at OJK, said that the divestment plan, along with the potential initial public offering (IPO) of AAI, is under examination.
“We are unable to provide further details until all requirements are fulfilled. OJK will issue a publication permit once the process is complete,” Inarno said in a written statement on Thursday, October 3, 2024.
Adaro Energy plans to sell up to 99.99 percent of AAI shares through a Public Offering to Shareholders (PUPS) at a price calculated based on the volume-weighted average price (VWAP) of AAI shares after market close on the Indonesia Stock Exchange (IDX).
The offering is expected to raise between US$2.45 billion and US$2.63 billion (Rp37.77 trillion to Rp 40.54 trillion).
The transaction will be executed through a crossing mechanism on the IDX, subjecting the seller to a final income tax of 0.1 percent of the gross transaction value.
Crossing shares refers to transactions between two parties or investors utilizing the same broker, occurring in the negotiation market rather than the regular market.
Mahardika Putranto, Corporate Secretary of Adaro Energy Indonesia, said that the company aims to strategically expand and diversify its business beyond thermal coal.
This initiative is intended to build a more balanced business portfolio and provide stronger protection across various business cycles, thus creating long-term value for Adaro.
“The company’s core business activities remain unchanged,” Mahardika said in a written statement on January 19, 2024.
Additionally, Adaro Energy will continue operating as a holding company, offering management consultancy services to subsidiaries outside the AAI business group.
