Gotrade News - PT Adaro Andalan Indonesia Tbk (AADI), controlled by Indonesian billionaire Garibaldi "Boy" Thohir, is selling its entire stake in the Kestrel metallurgical coal mine to Yancoal Australia for up to USD2.4 billion. AADI shares surged 6.07% to Rp10,900 on Wednesday (04/15) on the divestment news.
Key Takeaways:
- AADI divesting Kestrel Coal to Yancoal for USD2.4 billion, a USD150 million gain over the 2018 acquisition price
- AADI shares jumped 6.07% to Rp10,900 with Rp224 billion in transaction value
- Citi analyst projects potential 15% special dividend yield following the sale
The Kestrel metallurgical coal mine is located in Queensland, Australia, and was originally acquired from Rio Tinto. Adaro purchased Kestrel in 2018 for USD2.25 billion, according to Dow Jones Newswires as cited by IDX Channel.
The USD2.4 billion sale price represents a gain of approximately USD150 million over the original acquisition cost. An initial cash payment of USD1.85 billion is expected at closing, targeted for the end of Q3 2026.
Additional payments of up to USD550 million may be made over the next five years. These contingent payments are tied to average coal benchmark pricing, per IDX Channel.
Yancoal Australia, majority-owned by China's Yankuang Energy Group, will acquire 80% of the mining operation. EMR Capital and Adaro Capital are the sellers in this transaction.
AADI shares rose 6.07% to Rp10,900 per share as of 9:51 AM local time. Transaction value reached Rp224.19 billion, with the stock up 7.11% over the past week.
Citi analyst Ryan Davis noted that AADI's net cash position creates an opportunity for a special dividend. The potential special dividend yield is estimated at around 15%, according to IDX Channel.
Other Thohir-controlled stocks also gained on positive sentiment. PT Alamtri Resources Indonesia (ADRO) rose 2.45% to Rp2,510 and PT Alamtri Minerals Indonesia (ADMR) climbed 1.04% to Rp1,930.
The divestment allows AADI to focus on its thermal coal operations. Exposure to metallurgical coal and downstream minerals will be maintained through ADMR.
