Anthoni Salim, president director and chief executive officer of PT Indofood CBP Sukses Makmur, speaks during a joint news conference with Naoki Izumiya, president and representative director of Asahi Group Holdings Ltd., unseen, in Tokyo, Japan, on Monday, Feb. 24, 2014. Photographer: Yuriko Nakao/Bloomberg
ｩ 2014 Bloomberg Finance LP
Mach Metals Australia, controlled by Indonesian billionaire Anthoni Salim, has made an A$393 million ($265 million) bid to acquire all outstanding shares of Australian copper miner Rex Minerals. The billionaire is doubling down on copper investments amid burgeoning demand for electric vehicles in the global transition to green energy.
Salim bought an almost 16% stake in the company earlier in the year. On Monday, he made a A$0.47 ($0.32) per share cash offer for all outstanding shares, according to a filing with the Australian Stock Exchange on Monday.
The offer represents a premium of 79% over Rex Mineral’s 30-day, volume-weighted average trading price. After the announcement, its shares surged 56% in Monday trading. The deal is subject to shareholder and regulatory approval and is planned to be completed in October.
Rex Minerals has sought A$854 million in funding from investors to develop the Hillside Copper-Gold Project, located around 150 kilometers from Adelaide. The project is Australia’s largest open pit copper project, with resources of 1.9 million tonnes.
“We are excited to acquire and continue the development of the Hillside Project, which aligns with our strategy to diversify our asset portfolio,” Ferdian Purnamasidi, managing director of Mach Metals, said in a statement. “Our strong focus on copper is critical to the energy transition process.”
Mach Metals Australia is a unit of Mach Australia Holdings, which was established in 2015 and is fully owned by the Salim Group. In 2016, Mach Energy Australia, one of its subsidiaries, acquired the Mount Pleasant thermal coal project from Rio Tinto. That mine has an estimated 474 million tonnes of thermal coal reserves for export.
Salim Group, one of Indonesia’s largest conglomerates, has a diverse portfolio including food, retail, banking, telecommunications and energy. The group is particularly known for its food business, which includes Indofood, one of the world’s largest producers of instant noodles.
In addition to mining operations, the Salim Group has been expanding its infrastructure investments. Last week, the group’s Metro Pacific Tollways subsidiary partnered with Singapore’s sovereign wealth fund GIC to invest $1 billion in Jasamarga Transjawa Tol, an Indonesian state-owned toll road operator.
Salim and his family have a net worth of $10.3 billion and were ranked fifth on Indonesia’s 50 Richest List, which was released last December.