Golden Eagle Energy is a coal mining group with over 300 million tonnes of total proven and probable reserves in South Sumatra that is listed on the Indonesia stock exchange, while Marga Bara Jaya is an infrastructure company in South Sumatra. According to the report by Geo Energy, Marga Bara Jaya can supplement the performance of Golden Eagle Energy.
SGX-listed Geo Energy Resources has entered a conditional sales and purchase agreement with Rajawali Group to acquire two companies — Indonesian-listed Golden Eagle Energy and Marga Bara Jaya — giving it a controlling stake and equity stake of 58.65% and 33% of the issued shares respectively.
The aggregate consideration to be paid for the acquisitions are US$154.1 million ($204.54 million) and US$49,500 respectively. The company intends to finance the acquisitions with internal cash resources and external financing, such as bank loans, according to a statement put out on July 26.
