Disbursing Rp1.56 Trillion, Patrick Walujo's Conglomerate Company Acquires Mining Contractor From Australia

JAKARTA - An investment company that focuses on mining services, PT Delta Dunia Makmur Tbk (DOID) through its subsidiary PT Bukit Makmur Mandiri Utama (BUMA) has acquired one of the largest mining contractor companies from Australia, Open Cut Mining East.

DOID, a company controlled by the Northstar Group owned by conglomerate Patrick Walujo, has purchased shares in Open Cut Mining East for up to 150 million Australian dollars or the equivalent of 110 million US dollars. If we use the assumption of an exchange rate of IDR 10,434.50 per Australian dollar, then the acquisition value made by DOID will reach IDR 1.56 trillion.

Open Cut Mining East is a subsidiary of Downer EDI Ltd. Sellers and buyers have signed a transaction agreement on Monday 11 October

The transaction includes the transfer of assets, liabilities (including employee rights) and contracts comprising the Open Cut Mining East business to BUMA. Downer will receive approximately A$150 million from the sale of the Open Cut Mining East stake, subject to the settlement process.

Meanwhile, BUMA has paid a Downer deposit of 16 million Australian dollars, the rest will be paid upon completion of the transaction. Downer Chief Executive Officer Grant Fenn said the sale of Open Cut Mining East was the final step in the company's divestment of its mining business portfolio.

Together with the previously announced divestment of mining and laundry business assets, the total proceeds from the Downer Group divestment program amount to AUD 778 million.

"An important part of our urban services strategy is getting out of the capital-intensive mining business. The sale of Open Cut Mining East is the final step in this process," said Grant Fenn in a written statement, quoted Wednesday, October 13.

Downer Group's management targets that the completion of the Open Cut Mining East divestment transaction to BUMA can occur before the end of 2021. For information, Downer Group is engaged in the business of designing, building, and sustaining integrated infrastructure project assets in Australia and New Zealand.

With a history of over 150 years, Downer is listed on the Australian Stock Exchange and the New Zealand Stock Exchange as Downer EDI Limited (DOW). The company employs approximately 44,000 people in more than 300 locations, mainly in Australia and New Zealand.