Resources Global Development Limited Announces Major Stake Acquisition in Coal Mining Assets

Proposed Acquisition of Draco Investment Holdings Pte. Ltd. as an Interested Person Transaction

Date: 24 December 2025

Key Points of the Announcement

• Acquisition Target: Resources Global Development Limited (“RGD” or “the Company”) has entered into a Share Purchase Agreement (SPA) to acquire 100% of Draco Investment Holdings Pte. Ltd. (“Draco”), a holding company with significant interests in Indonesian coal mining companies.
• Transaction Value: The purchase consideration is US\$1,000,000 (approximately S\$1.3 million), to be satisfied entirely in cash. Additionally, an outstanding loan of US\$11,020,674 (approximately S\$14.2 million) owed by Draco to the seller (Southeast Earnest Investment Pte. Ltd., a subsidiary of Deli International Resources Pte. Ltd.) will be assumed by RGD.
• Ownership Structure: Post-acquisition, Draco will become a wholly-owned subsidiary of RGD. The acquisition will consolidate RGD’s effective interest in several Indonesian coal mining companies from 9.73% to 49.73%.
• Nature of Transaction: This is an Interested Person Transaction under Singapore’s Catalist Rules, as the seller is a subsidiary of RGD’s controlling shareholder.

Details of the Target and Related Entities

• Draco Investment Holdings Pte. Ltd.: Incorporated in Singapore, Draco is a holding company with no direct business activities. It owns 99.99% of PT Bara Sejahtera Bersama (PT BSB).
• PT BSB: Holds direct and indirect stakes in four Indonesian coal mining companies (PT Persada Kapuas Prima, PT Pesona Bara Cakrawala, PT Cakrawala Bara Persada, PT Pasir Bara Prima) and a 25% stake in PT Dwi Daya Swakarya (PT DDS), which in turn owns 80% of each of the coal mining companies.
• RGD’s Current Position: RGD, through Batubara Development Pte. Ltd., already holds a 16.22% stake in PT Singaraja Putra Tbk (IDX-listed), which holds a 75% interest in PT DDS.

The acquisition will result in RGD holding an effective aggregated equity interest of approximately 49.73% in each of the coal mining companies, significantly increasing its exposure to Indonesian coal assets.

Financials & Valuation

• Draco Financials: As of 30 June 2025, Draco reported a net loss of S\$432,700 and a book value/net asset value of S\$552,300. No independent valuation was conducted.
• Consolidated Net Asset Value (NAV): The purchase price was determined on a willing-buyer, willing-seller basis, factoring in the outstanding loan, net asset value, the stage of development of the mining assets, and existing RGD interests.
• Terms of Payment: Both the consideration and the assumed loan are to be repaid at RGD’s discretion, with no fixed repayment terms or interest, minimizing immediate cash outflow risk.

Strategic Rationale

• Substantial Increase in Coal Asset Exposure: The acquisition will consolidate RGD’s effective interest in the underlying coal mining companies from 9.73% to 49.73%, enhancing earnings potential and improving group financial performance.
• Transition to Production: Two key mines (PT PKP and PT PBP) have moved from greenfield to production stage, reducing development and execution risks and providing near-term revenue and cash flow potential.

Financial Effects on RGD

• Net Tangible Assets (NTA) Per Share: Minimal impact, with NTA per share decreasing slightly from 13.0 to 12.9 Singapore cents as of 31 December 2024.
• Earnings Per Share (EPS): EPS increases marginally from 2.1 to 2.1 Singapore cents (due to rounding), reflecting the anticipated profit contribution from the acquired assets.

Regulatory and Shareholder Implications

• Interested Person Transaction: As the seller is a subsidiary of RGD’s controlling shareholder, the acquisition is classified as an Interested Person Transaction but does not require shareholder approval as the consideration is only about 1.0% of RGD’s latest audited NTA.
• Audit Committee Review: The Audit Committee has reviewed the transaction and is satisfied that it is on normal commercial terms and not prejudicial to the interests of the company or its minority shareholders.
• Director Abstention: Mr. Salim Limanto, Executive Director and Deputy CEO, abstained from all deliberations and voting due to his familial relationship with interested parties.

Potential Share Price Sensitivity

• The acquisition substantially increases RGD’s stake in operating coal mines, which should improve earnings and cash flow visibility as production ramps up. This is a significant strategic move, positioning RGD for stronger future performance.
• The discretionary repayment structure of both the acquisition consideration and the assumed loan reduces immediate financial risk, supporting balance sheet stability.
• Shareholders should note that the transaction does not require their approval and the company has disclosed all material relationships, ensuring compliance with governance standards.
• RGD’s increased exposure to Indonesian coal assets and the commencement of production at key assets may positively influence future share price performance, though execution and commodity price risks remain.

Documents for Inspection

For transparency, key documents such as the SPA, financial results, and annual report are available for inspection at RGD’s registered office for a period of three months from the date of this announcement.

Cautionary Statement

Shareholders and potential investors are advised to exercise caution when dealing in RGD’s securities. There is no certainty that the proposed acquisition will proceed to completion, and further announcements will be made on material developments.

Disclaimer: This article is a summary and interpretation of the official disclosure by Resources Global Development Limited, provided for informational purposes only. It does not constitute investment advice. Investors should consult their own professional advisers and refer to the full company announcement and documents before making any investment decision.

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