Bayan Resources Plant - Photo by Bayan Resources

JAKARTA (TheInsiderStories) – Indonesian coal miner, PT Bayan Resources Tbk (IDX: BYAN) will acquired 44.95 percent shares of Australian miner Kangaroo Resources Limited (ASX: KRL) for US$515 million, said the company on August 17. Bayan currently holds approximately 56.05 percent of Kangaroo.

Based on the company announcement, Bayan bought Kangaroo’s shares at $0.15 per share. The offer price represents 275 percent premium to the closing share price on May 4, 2018. The transaction its expecting to be close on Dec. 6, 2018.

Kangaroo’s primary focus has been to create shareholder value through the development and eventual production of thermal coal from its Pakar North, Pakar South and GPK projects in East Kalimantan, Indonesia, leveraging off its contractual rights to utilise up to 30 percent of the available capacity at Bayan’s infrastructure assets, principally the Tabang haul road and Senyiur Port.

The parties have also entered into a strategic agreement which provides a more formalized framework of cooperation and support to enable the parties’ coal mining projects to be co-developed in order to maximize use of the infrastructure and allow both Bayan and the Kangaroo to optimize outputs and profitability from their respective projects.

Bayan is an integrated coal group primarily engaged in open cut coal mining and is listed on the Indonesian Stock Exchange. The company produces the majority of its environmentally-friendly low sulphur, sub-bituminous coal from its world-class Tabang and Pakar Project located in East Kalimantan.

Bayan differentiates itself by integrating each of the productions stages, being mining, processing and logistics, via the ownership of processing infrastructure at each of its mines and operating a number of barging and transhipment terminals.