AADI Set to Divest Jumbo-Valued Mining Assets in Australia, Check the Recommendations
JAKARTA. PT Adaro Andalan Indonesia Tbk (AADI) has recently made a significant business decision to sell all shares in the Kestrel Coal Group Pty Ltd coal mine in Australia. This action is being carried out by AADI through its subsidiary Adaro Capital Limited.
In a disclosure to the Indonesia Stock Exchange (BEI), Adaro Capital signed a Sale and Purchase Agreement (SPA) on 14 April 2026 regarding the planned sale of shares owned by the sellers in Kestrel Coal Group.
According to the SPA, the total number of Kestrel shares owned by Adaro Capital Limited amounts to 720,385,220 or 720.38 million ordinary shares, equivalent to 47.99% of the warrants owned by Adaro Capital.
“The completion of the planned transaction will be carried out after all preliminary conditions as agreed by the parties in the SPA have been fulfilled,” wrote AADI Corporate Secretary Ray Aryaputra in the disclosure on Tuesday (14/4/2026).
There is also a contingent cash consideration of a maximum total of up to US$550 million, which will be paid annually over a period of five years from the transaction completion date.
The value of the planned transaction to be received by Adaro Capital will be calculated based on their proportional ownership in Kestrel.
“The purpose of the planned transaction is to support the implementation of the company’s business and investment strategy,” stated Ray.
He also noted that there will be no material adverse impact on the company’s operational activities, legal status, financial condition, or business continuity.
Separately, Head of Research at Korea Investment & Sekuritas Indonesia (KISI), Muhammad Wafi, said that the sale of the stake in Kestrel will allow AADI to gain additional cash and minimise cross-border operational risks.
On the downside, AADI risks losing the benefits of geographic diversification and exposure to premium Australian metallurgical coal.
“Nevertheless, business continuity remains solid as domestic mines can support the majority of revenue,” he said on Wednesday (15/4/2026).
As a result, AADI has the opportunity to distribute large dividends. “The additional funds will support AADI’s business expansion without needing to incur new debt,” he added on Wednesday (15/4/2026).
Looking ahead, Nafan mentioned opportunities for AADI to pursue further inorganic expansion through the acquisition of other coal mines. To optimise this, AADI should focus on mining assets integrated with supply chains and logistics.
Meanwhile, according to Wafi, the potential for AADI to acquire other coal mines is clearly open following the divestment of assets in Australia. AADI’s future focus is likely to be on domestic metallurgical coal mines to support downstream programmes.
“The risks that AADI needs to be wary of include tightening bank funding due to ESG sentiments and mining regulatory uncertainties,” stated Wafi.
Beyond that, Wafi assesses AADI’s performance prospects as remaining positive in 2026. The strengthening coal prices are expected to drive margin improvements, provided they are accompanied by stable production volumes.
Therefore, Wafi recommends buying AADI shares with a target price of Rp13,000 per share.
On the other hand, Nafan stated that AADI’s bottom-line performance will be more stable this year. He recommends accumulating buys of AADI shares with a target price of Rp11,075 per share.