Press Metal signs MoU to acquire 25% stake in PT Bintan Alumina Indonesia

Press Metal Aluminium Holdings Berhad has signed a Memorandum of Understanding (MOU) to acquire 25 per cent equity interest in PT Bintan Alumina Indonesia.

PT Bintan Alumina Indonesia, involved in the production of non-ferrous metals, is building a 1 million-tonne alumina refinery plant together with the necessary facilities in Galang Batang, with plans for a second phase.

The company has entered into a MoU to negotiate and discuss the details of the acquisition. The acquisition is subjected to the completion of the necessary due diligence and agreement on the final terms and conditions.

Group Chief Executive Officer Tan Sri Paul Koon said: “We are constantly on the lookout for suitable assets to strengthen our position as a globally integrated aluminium corporation. We are excited about the synergistic benefits of this opportunity to Press Metal as it allows us to secure a substantial portion of our long-term alumina needs.

 We are still in discussions and the final terms are yet to be determined. We are still on expansion mode and have the intention to tap into the debt market to fund our growth. Our current net gearing is at a reasonable level. The capital injection for this asset is progressive in nature and therefore our gearing will continue to be manageable with our anticipated strong cashflow.”