Then, before more details on this big acquisition were announced, the company said it was making another acquisition. On Sept 23, Geo Energy said it would spend US$25 million ($34.5 million) to buy a 51% stake in two producing coal mines — Bara Anugrah Sejahtera and Banjarsari Pribumi — in South Sumatra.
(Sept 30): When Geo Energy Resources raised US$300 million in a bond issue in 2017, it was gearing up to buy additional assets. The interest rate of 8% a year on the bond — a hefty US$24 million a year — was something the Indonesia-based, Singapore-listed coal miner was willing pay, as it believed it was poised to acquire assets that could give it better returns.
For nearly two years, investors have been waiting for Geo Energy to make a big move — and now, one might be just round the corner. When the company announced its 2Q2019 earnings on Aug 14, it said it was doing due diligence on a producing coal mine in East Kalimantan, and that it expected to submit a binding offer by end-August. In an Aug 30 update, the company said it had submitted a revised non-binding proposal, and that if the deal was to take place, it would represent a “very substantial” acquisition.
