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Asset transaction Needs review ADMR

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                  INFORMATION DISCLOSURE TO THE SHAREHOLDERS
                     ON AN AFFILIATED-PARTY TRANSACTION OF
                PT ADARO MINERALS INDONESIA TBK (“THE COMPANY”)
This information disclosure on the affiliated-party transaction (hereinafter referred to as “Information Disclosure”)
was prepared to inform the Company’s shareholders on the transaction made by the Company to acquire the new
shares issued by PT Alam Tri Cakra Indonesia (“ATCI”), a limited-liability company whose shares are 99.99% directly
and indirectly owned by PT Adaro Energy Indonesia Tbk (“AEI”), a public company that directly and indirectly owns 83.839%
of the Company’s shares.

This transaction is an affiliated-party transaction as defined by Indonesian Financial Services Authority (FSA)’s
Regulation number 42/POJK.04/2020 on Affiliated-Party Transactions and Conflict of Interest Transactions (“POJK
42/2020”).

 THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS, EITHER SEVERALLY OR JOINTLY, ARE
 FULLY RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION DISCLOSURE AND THE AMENDMENT AND/OR
 ADDITION TO THE INFORMATION DISCLOSURE, IF ANY.

 THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS HEREBY DECLARE THAT THE
 INFORMATION AS DISCLOSED IN THIS INFORMATION DISCLOSURE IS COMPLETE, AND AFTER A DUE AND
 CAREFUL EXAMINATION, EMPHASIZE THAT THE INFORMATION STATED IN THIS INFORMATION DISCLOSURE IS
 TRUE, AND THAT THERE ARE NO RELEVANT AND MATERIAL FACTS OMITTED OR ELIMINATED IN SUCH A WAY
 THAT CAUSE THE INFORMATION PROVIDED HEREIN TO BE UNTRUE AND/OR MISLEADING.

 THE COMPANY’S BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS DECLARE THAT THIS AFFILIATED-
 PARTY TRANSACTION DOES NOT CONTAIN ANY CONFLICT OF INTEREST.




                            PT Adaro Minerals Indonesia Tbk
                                                   Business activities:
Management consultation activities, mining and other quarrying supporting activities, leasing and leasing without an option of
      mining and energy machineries and equipment, repair of machineries for specific purposes, and investments

                                                      Head office:
                                               Cyber 2 Tower, 34th floor
                            Jl. H.R. Rasuna Said, Blok X‐5 No. 13,Jakarta 12950, Indonesia
                                           Email: corsec@adarominerals.id
                                            Website: www.adarominerals.id

                              This information is issued in Jakarta on January 2nd, 2024.




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                                            DEFINITION

AEI:                            PT Adaro Energy Indonesia Tbk

ATA:                            PT Alam Tri Abadi

ATCI:                           PT Alam Tri Cakra Indonesia

Affiliation:                    defined as set forth by article 1 of the Capital Market Law or POJK
                                42/2020

Commissioner(s):                (a) member(s) of the Company’s Board of Commissioners holding such
                                position on the issuance date of this Information Disclosure

Director(s):                    (a) member(s) of the Company’s Board of Directors holding such
                                position on the issuance date of this Information Disclosure

Appraiser:                      the Office of Appraisal Services of Herman, Meirizki & Rekan, an
                                independent appraiser registered with Indonesia’s FSA, which has
                                been appointed by the Company to appraise the fair value and/or
                                fairness of the transaction as explained in this Information Disclosure

Appraiser’s Report:             the written report prepared by the Appraiser to present the
                                Appraiser’s opinion on the appraisal object, i.e. the transaction as
                                explained in this Information Disclosure, and the information on the
                                appraisal process of the transaction.

Company:                        PT Adaro Minerals Indonesia Tbk, a public company duly established
                                and organized under the law of the Republic of Indonesia and
                                domiciled in Jakarta, Indonesia

Controlled Company:             as defined by POJK 42/2020

POJK 42/2020:                   FSA’s Regulation number 42/POJK.04/2020 on Affiliated-Party
                                Transactions and Conflict of Interest Transactions

Transaction:                    as explained in the Introduction section of this Information Disclosure

Affiliated-Party Transaction:   as defined by POJK 42/2020




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I.    INTRODUCTION

      On December 28th, 2023, ATCI increased its capital by way of issuing 376,687 (three hundred seventy-six
      thousand six hundred eighty-seven) new shares with the total amount of Rp376,687,000,000 (three
      hundred seventy-six billion six hundred eighty-seven million rupiahs) (“New Shares”), all of which were
      participated and fully paid-up by the Company (“the Transaction”).

      Pursuant to article 4 point 1 of POJK 42/2020, the Transaction is an Affiliated-Party Transaction that requires
      an Appraiser to determine the fair value of the object of the Affiliated-Transaction and/or the fairness of the
      transaction, which has to be announced to the public. This transaction fulfills the characteristics of an
      affiliated-party transaction as defined by POJK 42/2020 because it was executed by and between the
      Company and ATCI, a company affiliated with the Company. The information as stated in this Information
      Disclosure is published in order to comply with the provision of POJK 42/2020.

      The Appraiser’s report used as a reference is the report of the Office of Appraisal Services of Herman,
      Meirizki & Rekan number 00015/2.0120-04/BS/02/0627/1/XII/2023 of December 27th, 2023 on the Report
      of Fairness Opinion (“Appraiser’s Report”). The Appraiser’s Report presents the fair opinion on the
      Transaction.

      This Affiliated-Party transaction has been through the procedure as set forth in article 3 of POJK 42/2020
      and executed in accordance with the generally applicable business practices.

      This Affiliated-Party Transaction is not a Conflict-of-Interest Transaction, and therefore does not require the
      prior approval of the Company’s General Meeting of Shareholders as set forth in POJK 42/2020 and does
      not fulfil the definition of a Material Transaction as specified in the FSA regulation No. 17/POJK.04/2020 on
      Material Transactions and Changes to Business Activities (“POJK 17/2020”), as the total value of this
      transaction is less than 20% (twenty percent) of the Company’s total equity value amounting to
      US$758,668,477 (seven hundred fifty-eight million six hundred sixty-eight thousand and four hundred
      seventy-seven United States dollars) based on its Financial Statements of June 30th, 2023, on which a limited
      review has been performed by Public Accountant Tanudiredja, Wibisana, Rintis & Rekan.

II.   BRIEF DESCRIPTION ON THE TRANSACTION AND THE EFFECT OF THE TRANSACTION TO THE COMPANY’S
      FINANCIAL CONDITION

      A. DESCRIPTION OF THE AFFILIATED-COMPANY TRANSACTION

         i. Background, Rationale and Benefits of the Transaction

         This Transaction was made as the strategy for developing the Company’s structure to support future
         expansion plans. By holding share ownership in ATCI, the Company may generate additional revenue
         contribution when business development has been implemented in ATCI.

         This Transaction is associated with the Adaro Group’s strategic step to align the business units with the
         business lines to create stronger and more efficient organizational structure, as well as providing
         flexibility for the Adaro Group in formulating long-term business strategies.

                                                       3
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ii. Brief Description on the Transaction

   The Transaction was executed with the following details:

   • ATCI’s authorized capital was increased by Rp1,620,448,000,000 (one trillion six hundred twenty
     billion four hundred forty-eight million rupiahs), consisting of 1,620,448 (one million six hundred
     twenty thousand four hundred forty-eight) shares to Rp1,658,748,000,000 (one trillion six
     hundred fifty-eight billion seven hundred forty-eight million rupiahs), consisting of 1,658,748
     (one million six hundred fifty-eight thousand seven hundred forty-eight) shares;
   • ATCI’s issued and paid-up capital was increased to Rp414,687,000,000 (four hundred fourteen
     billion six hundred eighty-seven million rupiahs), consisting of 414,687 (four hundred fourteen
     thousand six hundred eighty-seven) shares as the result of the issuance of new shares, which was
     fully subscribed and fully paid-up by the Company.

   Upon the execution of the Transaction:

   • The Company owns around 90.836% of ATCI’s shares or 376,687 (three hundred seventy-six
     thousand six hundred eighty-seven) shares;
   • AEI owns around 9.163% of ATCI’s shares or 37,999 (thirty-seven thousand nine hundred ninety-
     nine) shares; and
   • PT Alam Tri Abadi (“ATA“) owns around 0.001% of ATCI’s shares or 1 (one) share.

iii. Parties to the Transaction

   1. The Company

       Brief history

       The Company (previously PT Jasapower Indonesia) was established based on the Deed of
       Establishment number 9 of September 25th, 2007, made before Dwi Yulianti, S.H., a Notary in
       Jakarta. AMI’s Deed of Establishment has been verified by the Minister of Law and Human Rights
       of the Republic of Indonesia based on the Decree number C-01217 HT.01.01-TH.2007 of October
       25th, 2007 and announced in State Gazette of the Republic of Indonesia number 36 of May 2 nd,
       2008.

       The Company changed its name from PT Jasapower Indonesia to PT Adaro Minerals Indonesia
       Tbk based on Deed number 4 of September 1st, 2021 made before Humberg Lie, S.H., S.E., M.Kn.,
       a Notary in North Jakarta. The deed of the name change has been approved by the Minister of
       Law and Human Rights of the Republic of Indonesia based on Decree number AHU-
       0047835.AH.01.02.Tahun 2021 of September 6th, 2021.

       The Company’s Articles of Association have been amended several times, with the last
       amendment based on the Deed of Meeting Resolution number 81 of April 26th, 2022 made before
       Humberg Lie, S.H., S.E., M.Kn., a Notary in North Jakarta. The amendment to the Articles of
       Association was received by the Minister of Law and Human Rights of the Republic of Indonesia
       by Decree number AHU-AH.01.03-0232308 of April 26th, 2022.
                                           4
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   Management and supervision

   The compositions of the Company’s Board of Commissioners and Board of Directors on the date
   of this Information Disclosure as stated in the Deed of Meeting Resolution number 81 of April
   26th, 2022 made before Humberg Lie, S.H., S.E., M.Kn., a Notary in North Jakarta, are as follows:

   Board of Commissioners

   President Commissioner:             Garibaldi Thohir
   Commissioner:                       M. Syah Indra Aman
   Commissioner:                       Chia Ah Hoo
   Commissioner:                       Lie Luckman
   Independent Commissioner:           Mohammad Effendi
   Independent Commissioner:           Budi Bowoleksono

   Board of Directors

   President Director:                 Christian Ariano Rachmat
   Vice President Director:            Iwan Dewono Budiyuwono
   Director:                           Totok Azhariyanto
   Director:                           Hendri Tamrin
   Director:                           Heri Gunawan
   Director:                           Wito Krisnahadi

2. ATCI

   Brief history

   ATCI was established based on the Deed of Establishment number 51 of April 20th, 2021, made
   before Humberg Lie, S.H., S.E., M.Kn., a Notary in North Jakarta. ATCI’s Deed of Association has
   been verified by the Minister of Law and Human Rights of the Republic of Indonesia by Decree
   number AHU-0028421.AH.01.01.Tahun 2021 of April 26th, 2021.

   ATCI’s Articles of Association have been amended several times with the last amendment by
   Deed number 30 of March 18th, 2022 made before Humberg Lie, S.H., S.E., M.Kn., a Notary in
   North Jakarta, which has received the notification receipt from the Minister of Law and Human
   Rights of the Republic of Indonesia by the Receipt of the Notification on the Amendment to the
   Articles of Association number AHU-AH.01.03-0220267 of April 4th, 2022.

   Management and supervision

   Based on Deed number 166 of June 9th, 2022 made before Humberg Lie, S.H., S.E., M.Kn., a Notary
   in North Jakarta, which has been notified to the Minister of Law and Human Rights of the Republic
   of Indonesia as confirmed by the Receipt of the Notification on the Change in the Company’s
   Data number AHU-AH.01.09-0020450 of June 10th, 2022, the compositions of ATCI’s Board of
   Commissioners and Board of Directors are as follows:
                                        5
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   Board of Commissioners

   President Commissioner: M. Syah Indra Aman
   Commissioner:           Michael William P. Soeryadjaya

   Board of Directors

   President Director:        Christian Ariano Rachmat
   Director:                  Julius Aslan

3. AEI as the controlling company of the Company and ATCI

   Brief history

   AEI was established based on the Deed of Establishment made before Sukawaty Sumadi, S.H., a
   Notary in Jakarta, number 25 of July 28th, 2004. AEI’s deed of incorporation was announced in
   the State Gazette of the Republic of Indonesia number 59 of July 25th, 2006, Supplement to State
   Gazette number 8036, and approved by the Minister of Law and Human Rights of the Republic
   of Indonesia by Decree number C-21493 HT.01.01.TH.2004 of August 26th, 2004. AEI’s Articles of
   Association have been amended several times with the latest amendment made by a notarial
   deed of Mahendra Adinegara, S.H., M.Kn. number 16 of February 15th, 2022. Such amendment
   to the Articles of Association has been approved by the Minister of Law and Human Rights of the
   Republic of Indonesia by the decree number AHU-0011776.AH.01.02.TAHUN 2022 of February
   16th, 2022.

   Management and supervision

   Based on the notarial deed number 44 of May 22 nd, 2023 made before Humberg Lie, S.H., S.E.,
   M.Kn., a Notary in North Jakarta, which has been received by the Minister of Law and Human
   Rights of the Republic of Indonesia as confirmed by the Receipt of the Notification on the Change
   in the Company’s Data number AHU-AH.01.09- 0121980 of May 29th, 2023, the compositions of
   AEI’s Board of Directors and Board of Commissioners are as follows:

   Board of Commissioners

   President Commissioner:             Edwin Soeryadjaya
   Vice President Commissioner:        Theodore Permadi Rachmat
   Commissioner:                       Arini Saraswaty Subianto
   Independent Commissioner:           Mohammad Effendi
   Independent Commissioner:           Budi Bowoleksono

   Board of Directors

   President Director:                 Garibaldi Thohir
   Vice President Director:            Christian Ariano Rachmat
   Director:                           Michael William P. Soeryadjaya
                                        6
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       Director:                         Chia Ah Hoo
       Director:                         M. Syah Indra Aman
       Director:                         Julius Aslan

iv. Nature of the Affiliation

   This Transaction is categorized as an Affiliated-Party Transaction as defined by POJK 42/2020. The
   following chart presents the affiliated-party relationship of the Company, ATCI and AEI:

   Prior to the transaction




   After the transaction




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          Notes:

                   (1)   AEI:                PT Adaro Energy Indonesia Tbk
                   (2)   ATA:                PT Alam Tri Abadi
                   (3)   AMT:                PT Adaro Mining Technologies
                   (4)   ATCI:               PT Alam Tri Cakra Indonesia
                   (5)   The Company:        PT Adaro Minerals Indonesia Tbk



       B. EFFECTS OF THE TRANSACTION ON THE COMPANY’S FINANCIAL CONDITION (PRO FORMA)

          The Company’s pro forma balance sheet                                                    (in US$)
           Balance Sheet                        Reviewed                  Transaction             Pro forma
                                             June 30th, 2023                                   June 30th, 2023
           Assets
           Current assets                             628,990,711             7,481,107            636,471,818
           Non-current assets                         708,271,812                38,495            708,310,307
           Total Assets                             1,337,262,523             7,519,602          1,334,782,125
           Liabilities
           Short-term liabilities                     204,310,985             5,013,797            209,324,782
           Long-term liabilities                      374,283,061                     ‐            374,283,061
           Total liabilities                          578,594,046             5,013,797            583,607,843
           Total Equity                               758,668,477             2,505,805            761,174,282
           Total Liabilities and Equity             1,337,262,523             7,519,602          1,344,782,125



       C. EXPLANATION, CONSIDERATION AND RATIONALE FOR EXECUTING THE TRANSACTION IN
          COMPARISON WITH THE CONDITION IF A SIMILAR TRANSACTION IS EXECUTED WITH A NON-
          AFFILIATED PARTY

          The Company is of the perspective that there will be no difference if the Transaction is executed with
          an unaffiliated party. The Transaction has been prepared to incorporate the same terms and conditions
          as those incorporated in transactions made with an unaffiliated party, thus the terms and conditions
          of the Transaction have been made on an arm’s length basis.

III.   SUMMARY OF THE APPRAISER’S REPORT

       Pursuant to article 4 of POJK 42/2020, public companies intending to execute an Affiliated-Party Transaction
       must use an Appraiser’s service to determine the fair value of the object of the Affiliated-Party Transaction
       and/or the fairness of the transaction.

       To ensure the fairness of the planned Transaction, the Company appointed an Appraiser, i. e. the Office of
       Appraisal Services of Herman, Meirizki & Rekan to provide the fairness opinion on the Transaction, based on
       the quotation no. 074/SP/HMR-JKSL/B/XII/2023 of December 4th, 2023, which has been approved by the
       Company.

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The statement of the appraiser’s report of fairness opinion as presented in the Report on the Fairness
Opinion No. 00015/2.0120-04/BS/02/0627/1/XII/2023 of December 27th, 2023 is summarized as follows:

i. Identity of the parties

   The parties involved in the planned Transaction are:

   1.   The Company as the party acquiring the new shares to be issued by ATCI; and
   2.   ATCI as the party issuing new shares to be acquired by the Company.

ii. Object of the fairness analysis

   The object of the fairness analysis herein is the planned capital increase by ATCI by way of issuing new
   shares, all of which to be subscribed and fully paid-up by the Company.

iii. Purpose of appraisal

   The purpose and objective of this fairness opinion is to provide the fairness opinion on the planned
   Transaction. The fairness opinion is prepared to comply with the provision of POJK 42/2020.

iv. Assumptions and limiting conditions

   The Appraiser’s statement on several assumptions used in compiling this fairness opinion is:
   • This Fairness Opinion is a non-disclaimer opinion.
   • The projected financial statements are provided by the Company’s management and have been
      adjusted to reflect its fiduciary duty.
   • The Appraiser is responsible for the report of fairness opinion and the opinion in the report of
      fairness opinion.
   • The Appraiser assumes that after the issuance date of this report of fairness opinion, there will
      be no changes that have material effects on the planned transaction.
   • In conducting the analysis, the Appraiser relies on the data provided by the management or the
      assignor, which include the financial data, legality, information in the copy of the draft of
      Shareholders’ Circular Resolutions, etc.
   • The Appraiser has made the necessary review on the data received from the management for
      analyzing this transaction. The validity, reliability, and accuracy of such data are within the
      management’s responsibility.
   • Any change to the data and information known after the issuance date of the report of fairness
      opinion that may materially affect the fairness opinion is not under the Appraiser’s responsibility. In
      the event of any other fact or information known after the issuance of the report of fairness opinion
      which may materially affect the fairness opinion, the Appraiser is not responsible for updating the
      fairness opinion in the future.
   • This fairness opinion is compiled based on the market and economic condition, the general business
      and financial condition, and the government regulations applicable on the date of this fairness
      opinion.

                                                9
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         • This fairness opinion shall be treated in its entirety. The partial use of the analysis and information,
           without considering the content of this fairness opinion in its entirety may lead to misleading views
           on the process underlying this fairness opinion.
         • In analyzing the industries associated with the Company’s business operations, the Appraiser has
           used the data obtained from external parties deemed to be credible.
         • The Company’s historical financial data are retrieved from the financial statements audited by an
           independent public accountant registered as the Financial Services Authority; therefore, the
           Appraiser did not make any confirmation and verification on the validity of the data presented in the
           financial statements.
         • The Appraiser did not conduct any due diligence on the Company’s taxation or its implication for the
           execution of the planned Transaction.
         • The financial projections and the assumptions used in the calculation are obtained from the assignor,
           and adjustment have been made as required by to accommodate the preparation of the fairness
           opinion.
         • This report of fairness opinion is made available to the public, except for the confidential information
           which may affect the Company’s operations.
         • The work of the Appraiser shall not be interpreted as or intended for an audit review or the
           implementation of particular procedures nor is it intended for disclosing the weaknesses in internal
           control, errors or violations in the financial statements, and/or legal violations.

      v. Approaches and appraisal method

         In compiling this Report of Fairness Opinion on this planned Transaction, the Appraiser used the
         approaches and appraisal method referring to FSA regulations, Indonesian Appraisal Standards and the
         Indonesian Appraisers’ Code of Conduct that consist of:

         a. Analysis on the planned Transaction
         b. Qualitative and quantitative analyses on the planned Transaction
         c. Analysis on the fairness of the planned Transaction
         d. Analysis on other relevant factors

      vi. Fairness Opinion on the Transaction

         Based on the study and analysis conducted on all associated aspects for determining the positive impacts
         of this planned Transaction either qualitatively or quantitatively, the Appraiser is of the opinion that the
         planned Transaction is fair.

IV.   BOARD OF DIRECTORS’ STATEMENT

      The Company’s Board of Directors declares that this Transaction has been implemented through sufficient
      procedure and ensures that the Transaction is executed in accordance with the generally applicable
      business practices, i. e. the procedure to compare it with the terms and conditions of a transaction made
      between parties who do not have an Affiliated relationship and made by fulfilling the arm’s-length principle.




                                                       10
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V.    BOARD OF COMMISSIONERS’ & BOARD OF DIRECTORS’ STATEMENT

      The Company’s Board of Commissioners and Board of Directors hereby declare that the Transaction is an
      Affiliated-Party Transaction which does not contain any conflict of interest as set forth in POJK 42/2020.

      The Company’s Board of Commissioners and Board of Directors hereby declare that they have carefully
      reviewed the information provided with regard to the Transaction as presented in this Information
      Disclosure, in addition to affirming that all material information regarding the Transaction has been
      disclosed in this Information Disclosure and the material information is true and not misleading.
      Subsequently, the Company’s Board of Commissioners and Board of Directors hereby declare that they hold
      full responsibility on the accuracy of all information provided in this Information Disclosure.

VI.   ADDITIONAL INFORMATION

      The Company’s shareholders wishing to receive further information on the Transaction can contact:

                                             PT Adaro Minerals Indonesia Tbk
                                                 Cyber 2 Tower 34th Floor
                                Jl. H.R. Rasuna Said Block X-5, No. 13 South Jakarta 12950
                                                         Indonesia
                                              Email: corsec@adarominerals.id




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