JAKARTA - PT Bayan Resources Tbk (BYAN) and its subsidiary, PT Bayan Energy (BE), acquire the entire shares of PT Kariangau Power, owned together by Low Tuck Kwong, SLM Holding Pte Ltd (SLM), and Gallant Power Pte Ltd (Gallant). This is categorised as affiliate transaction due to shared shareholders.

The information disclosure quoted by IDNFinancials today (3/7) mentioned that the sale and purchase agreement regarding 461,943 units of KP’s shares worth IDR 461.94 billion had been signed last week (26/6). The total shares were bought in cash, worth a total of IDR 176.08 billion.

BYAN will purchase 33.750 units of shares worth IDR 33.75 billion from Low Tuck Kwong for IDR 12.86 billion, as well as 282,299 shares of SLM for IDR 107.60 billion and 30,408 shares of Gallant for IDR 11.59 billion. PT BE, BYAN’s subsidiary will acquire another 115,486 shares of SLM for IDR 44.02 billion.

After this transaction, BYAN wishes to see increased production capacity and profitability of KP. As of now, PT Dermaga Perkasapratama (DPP), BYAN’s subsidiary, is the one operating the Balikpapan Coal Terminal (BCT) in the coal-fuelled power plant of 2x15 megawatts (MW) owned by KP. DPP acquires 2.5 million kWh of electricity from KP, monthly, worth IDR 2,500/kWh, thus bringing the total up to IDR 6.25 billion per month. DPP’s electricity consumption level is projected to rise to 3.6 million kWh per month as the Phase 5 of BCT expansion concludes in 2024.

The actual cost of electricity production of KP is recorded at IDR 1,260 per kWh. Thus, by acquiring KP, BYAN could save up to IDR 1,240 per kWh or IDR 3.1 billion monthly in 2023, and IDR 4.5 billion monthly in 2024. The return of this acquisition is projected to reach USD 3.6 million per annum or USD 15 million in 4.2 years, to April 1, 2028.

BYAN is listed as an issuer that has received four categories in Indeks52, an alternative index launched through the collaboration of Tempo.co and IDNFinancials two weeks ago (23/6). (LK/ZH)