(Image Credit : Golden Energy)

JAKARTA (TheInsiderStories) – Indonesian conglomerate Sinarmas Group, through its subsidiary Singapore listed company, Golden Energy and Resources Limited (SGX:AUE), has acquired a 10 per cent share in an Australian gold miner company, Westgold Resources Limited (ASX:WGX) for A$66.96 million, or approximately US$50.6 million, according to a company release.

The company has entered into a subscription agreement with Westgold for up to 36,000,000 fully-paid new ordinary shares in its capital. When fully subscribed, the shares will represent approximately 10 per cent of the post-investment capital of Westgold.

This move will place Golden Energy as the one of the largest shareholders in Westgold, alongside reputed institutional investors. Golden Energy will as a result have the right to nominate a Director of Westgold.

The transaction will be completed in three tranches, for a total of 36 million shares. The first, of 16.9 million shares, is expected to be settled on Dec. 5, 2017. The second tranche of 11 million shares is expected to occur on Jan. 12, 2018, and the third of 8.1 million shares will be completed subject to the approval of Golden Energy.

Shares are to be sold to Golden Energy at an issue price of A$1.885.

‘We are pleased to have partnered with Westgold, and to be a part of its dynamic team expanding its existing gold mining, and sharing its continued growth in the gold sector and mine contracting business,’ Golden Energy Chief Executive Officer, Fuganto Widjaja, said in an official statement.

Its financial statement reveals how Golden Energy successfully booked a remarkable profit, compared to Sinarmas Group’s other subsidiaries Third Quarter, the company recorded a 62 per cent jumps in profits, from $284.61 million to $462.14 million.

Westgold Managing Director Peter Cook said the investment from Sinarmas Group will assist the company to continue its aggressive growth following the acquisition of the Tuckabianna Project, private mining contractor Australian Contract Mining Pty Ltd., and would support exploration and development within the Group.

“All our current development strategic projects are now fully-funded with some additional growth capacity available,” said Cook.

Golden Energy and Westgold are being advised by boutique corporate advisory firm, Gold Quay Capital Ltd of Singapore.

Last July, Sinarmas Land, a Sinarmas Group property subsidiary, acquired real estate operator Horseferry Property for about S$268 million or US$198 million.

Horseferry Property operates called 33 Horseferry Road, a commercial building in central London. The property covers an area of 16,700 square meters, with office buildings on 15,100 square meters. Following this acquisition, the total area of land owned by Sinar Mas Land is approximately 46,000 sqm.

Written by Elisa Valenta email: elisa.valenta@theinsiderstories.com

 

 

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