Rajawali Group to Sell Majority Stake in SMMT to Geo Energy

By Editorial Team 28/07/2023
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Summary

Rajawali Group, a conglomerate operating in the hospitality, media, infrastructure, mining, and natural resources sectors, is planning to divest most of its shares in PT Golden Eagle Energy Tbk (SMMT), its coal company, to Geo Energy Resources Limited. The conglomerate, owned by Peter Sondakh, currently holds an 83.65 percent stake in SMMT through its subsidiary, PT Mutiara Timur Pratama.

The conglomerate has recently signed a conditional share purchase agreement (CSPA) with Geo Energy. "Geo Energy will acquire 58.65 percent of SMMT's shares and 33 percent of its affiliated company, PT Marga Bara Jaya (MBJ)," as quoted from Geo Energy's official statement on Wednesday.

Geo Energy's shares in SMMT may increase to 75 percent if the public shareholders accept their tender offer (MTO). Geo Energy also has the option to purchase an additional 25.70 percent ownership in MBJ. The total value of this transaction, including the MTO, is estimated to be around US$ 200 million or approximately Rp 3 trillion.

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