Happy Hapsoro's SINI Speaks Out on Prajogo Company Acquisition
PT Singaraja Putra Tbk. (SINI), an issuer owned by Happy Hapsoro, has provided an explanation regarding its acquisition of PT Kemilau Mulia Sakti (KMS), a subsidiary of Prajogo Pangestu’s PT Petrosea Tbk. (PTRO). The transaction is valued at Rp1.73 trillion, representing 110.26% of SINI’s total assets.
SINI’s management stated that the takeover is part of a business development strategy to strengthen its investment portfolio in the coal mining sector, which it believes has positive medium-term growth prospects. Global coal demand is expected to remain sustained, particularly from Asian countries such as China and India. Furthermore, national electricity demand is projected to grow at an average of around 5.3% per year, with coal still playing a vital role in supporting the national energy supply in the medium term.
“This acquisition is expected to expand the company’s business scope, strengthen the investment portfolio in the coal mining sector, and increase the company’s revenue and profit contributions,” SINI management said in response to an inquiry from the Indonesia Stock Exchange (IDX). In the short term, the acquisition will increase the company’s asset value and boost investor confidence by providing added value. The long-term impact includes a potential increase in production capacity and coal sales volume, leading to revenue and profit growth. The acquisition is also expected to create operational synergies, integrating sales, product, and logistics aspects to enhance SINI’s bargaining power, while reducing dependence on a single operational area.
The IDX highlighted that PT Petrosea Tbk (PTRO) is the seller of KMS and also acts as the standby buyer in SINI’s rights issue, which aims to raise Rp3.6 trillion. The funds from this rights issue will be used to finance the acquisition of KMS. The exchange questioned whether a long-term, competitively priced mining services contract was agreed upon as part of the acquisition. SINI’s management disclosed that a long-term mining services contract exists between PTRO and PT Pasir Bara Prima (PBP), valid until 2032. However, management clarified that this contract is a separate agreement and is not part of, nor a condition for, the KMS takeover transaction.