AcroMeta Group Makes Strategic Entry Into Indonesian Nickel Trading Through Partnership With PT Esa Jaya Labdagati

Key Highlights of the Announcement

• AcroMeta Group Limited (“AcroMeta”) has moved to enter the Indonesian nickel trading market through a proposed strategic partnership with PT Esa Jaya Labdagati (“EJL”).
• The partnership will focus on nickel trading and development activities based around EJL’s nickel concession in South Konawe, Sulawesi.
• AcroMeta Minerals Pte. Ltd., a wholly owned subsidiary of AcroMeta, has secured a six-month option to acquire 51% of the South Konawe nickel concession via the issuance of AcroMeta shares at a minimum of S\$0.06 per share, or a 10% premium to the prevailing share price, whichever is higher, subject to due diligence and valuation.
• EJL is a significant Indonesian nickel trading company with annual revenues exceeding S\$100 million and operations across Sulawesi and Maluku.
• The partnership positions AcroMeta to participate in evolving global supply chains for nickel, a critical input for stainless steel production and energy transition applications (notably electric vehicle batteries and renewable energy technologies).

Details Investors Should Note

• Potential Equity Issuance: The proposed acquisition of 51% of the nickel concession will be paid for with AcroMeta shares, with a minimum issue price set at S\$0.06 per share or a 10% premium to the prevailing market price before the signing of definitive agreements – whichever is higher. This may result in share dilution for existing shareholders but also signals confidence in the future value of the business.
• Initial Capital Commitment: AcroMeta Minerals will provide an initial disbursement of up to S\$500,000 upon execution of definitive agreements, with an option to increase this to S\$2 million. These funds are expected to support the ramp-up of nickel trading activities and development of the concession.
• Due Diligence and Valuation: The deal is subject to AcroMeta’s satisfactory completion of due diligence and a formal valuation of the concession. This provides a layer of investor protection, but also means the deal is not yet final and could be altered or withdrawn.
• Strategic Rationale: The move is part of AcroMeta’s strategy to diversify and broaden its business portfolio, leveraging the surging global demand for nickel driven by the energy transition and infrastructure sectors.
• Potential Share Price Sensitivity: This is a material diversification from AcroMeta’s traditional facility management services business into the mining and commodities sector. The outcome of this deal, the results of due diligence, and the performance of nickel markets could significantly affect AcroMeta’s share price going forward.
• Option Period: The six-month option gives AcroMeta flexibility to assess the opportunity in detail before committing to the 51% acquisition, reducing execution risk but also meaning shareholders should watch for further updates.
• Corporate Governance: The transaction is subject to definitive agreements and all requisite approvals.

Management Commentary

Mr. Lawrence Toh, Executive Director of AcroMeta Group, stated: “This proposed partnership represents a strategic step in advancing AcroMeta’s participation in the global nickel value chain. By working with PT Esa Jaya Labdagati, we are positioning the Group to participate in growing nickel demand while maintaining a disciplined and flexible approach. We believe this collaboration supports our longer-term objective of building sustainable value for shareholders.”

Why This News Is Potentially Share Price Moving

• Sector Diversification: AcroMeta’s entry into nickel trading marks a major shift from its traditional business, opening new growth avenues and potential re-rating by the market.
• Exposure to High-Growth Commodities: Nickel is a critical mineral for electric vehicles and renewable energy, sectors with strong global growth prospects.
• Potential Share Dilution: The use of shares for acquisition may impact share value and is an important consideration for existing shareholders.
• Conditionality and Execution Risk: The partnership remains subject to due diligence, valuation, and final agreements. Any negative findings or an inability to close the deal could reverse positive sentiment.

Contact and Additional Information

• For more information, investors may contact AcroMeta Group Limited (Mr. Lee Foo Tuck, Tel: +65 6743 1300, Email: [email protected]) or Waterbrooks Consultants Pte Ltd (Mr. Wayne Koo, Tel: +65 6958 8008 / +65 9338 8166, Email: [email protected], [email protected]).

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult their financial advisors before making investment decisions. The deal described is subject to due diligence, valuation, and execution of definitive agreements, and may not proceed as described. The Singapore Exchange assumes no responsibility for the contents of this article.

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