Adaro Andalan (AADI) to Sell Australia's Kestrel Coal Mine, Valued at Jumbo Sum

PT Adaro Andalan Indonesia Tbk (AADI) has announced a jumbo transaction. Through its subsidiary, Adaro Capital Limited, the company will sell all shares in the Australian coal mine, Kestrel Coal Group Pty Ltd. The total shares of Kestrel owned by Adaro Capital Limited amount to 720,385,220 or 720.38 million ordinary shares. This is equivalent to 47.99% of the shares owned by Adaro Capital. The company has signed a sale and purchase agreement (SPA) with a third party as the buyer. Adaro did not disclose the identity of the Kestrel Coal buyer. Under the terms, payments will only be made each year if the average daily published price for the Platts Premium Low Vol Hard Coking Coal FOB Australia index in the assessment year exceeds a certain threshold. Subsequently, the value of the planned transaction to be received by ACL will be calculated based on ACL’s ownership proportion in Kestrel. “The purpose of the planned transaction is to support the implementation of the company’s business and investment strategy,” said Ray Aryaputra, Corporate Secretary of AADI, in a disclosure of information on Tuesday (14/4). He stated that there is no material adverse impact on AADI’s operational activities, legal status, financial condition, or business continuity. In the joint venture company, Adaro holds 48% of the shares, while EMR holds 52% of the shares. The total acquisition value at that time reached US$2.25 billion. The acquisition funds came from 60% debt and 40% equity. Kestrel Coal is a premium underground metallurgical (coking) coal mine located in the Bowen Basin, Queensland, Australia. The mine is situated approximately 40–51 km north/northeast of Emerald and produces hard coking coal for the steel industry.