AcroMeta Group Announces Strategic Entry into Indonesian Nickel Trading via Partnership with PT Esa Jaya Labdagati

Key Highlights

• Strategic Partnership Signed: AcroMeta Group Limited, through its wholly owned subsidiary AcroMeta Minerals Pte. Ltd., has entered into a non-binding indicative term sheet with PT Esa Jaya Labdagati (EJL), a prominent Indonesian nickel trading company.
• Focus on Nickel Trading in Indonesia: The partnership will focus on nickel trading activities in Indonesia, capitalizing on EJL’s established operations in Sulawesi and Maluku and its ownership of a nickel concession in South Konawe, Sulawesi.
• Potential Acquisition Opportunity: AcroMeta Minerals has secured a six-month exclusive option to acquire a 51% interest in EJL’s South Konawe nickel concession.
• Potential Funding Commitment: AcroMeta Minerals may provide up to S\$2.0 million in funding as part of the arrangement.
• Acquisition Price Mechanism: If exercised, the acquisition will be priced at a minimum of S\$0.06 per share or a 10% premium to the prevailing closing share price of AcroMeta Group Limited (whichever is higher), subject to valuation, due diligence, and execution of definitive agreements.
• Strategic Rationale: This move is aligned with AcroMeta’s strategy to participate selectively in the global nickel value chain, which is experiencing rising demand due to stainless steel production and energy transition applications (e.g., batteries for electric vehicles).
• Financial Impact: The proposed transaction is not expected to have any material impact on the Group’s net tangible assets or earnings per share for the current financial year.
• Non-Binding Nature: The term sheet is non-binding, and there is no certainty that the transaction will be completed.

Details for Investors

AcroMeta Group Limited has made a significant strategic move by partnering with PT Esa Jaya Labdagati (EJL) to enter the Indonesian nickel trading market, a sector poised for substantial growth amid the global energy transition. EJL brings extensive experience in nickel trading, with active operations in the resource-rich Sulawesi and Maluku regions and direct ownership of a valuable nickel concession in South Konawe.

Under the signed non-binding term sheet, AcroMeta Minerals Pte. Ltd. has the opportunity to provide up to S\$2.0 million in funding to EJL and, importantly, holds a six-month exclusive option to acquire a controlling 51% stake in the South Konawe nickel concession. The acquisition price is structured for investor protection, set at the higher of S\$0.06 per share or a 10% premium over the last closing share price before the definitive agreement, subject to further valuation, due diligence, and finalization of terms.

This partnership is a direct response to the surging global demand for nickel, driven by its essential role in stainless steel manufacturing and battery technologies supporting the energy transition. By entering this supply chain, AcroMeta positions itself to potentially benefit from long-term industry tailwinds and diversify its earnings profile.

Shareholder Considerations & Price Sensitivity

• Potential Share Price Impact: While the transaction is currently non-binding, the prospect of AcroMeta securing a controlling stake in a nickel concession in Indonesia could be a significant value driver, depending on the outcome of due diligence, valuation, and eventual deal completion.
• Dilution Risk: If the acquisition proceeds and is funded via share issuance, the minimum price mechanism (S\$0.06 per share or a 10% premium) is relevant to existing shareholders as it sets a floor for potential dilution but could also lead to upward share price movement due to the strategic value of the asset.
• Execution Risk: The deal is not finalized; shareholders should note the risk that the transaction may not proceed, which could affect sentiment if expectations are not met.
• Financial Impact: The company has stated that the transaction is not expected to materially impact net tangible assets or earnings per share for the current financial year, suggesting the immediate earnings impact will be limited.
• Caution Urged: The Board advises shareholders to exercise caution when dealing in AcroMeta securities given the preliminary nature of the agreement.

Conclusion

This announcement represents a potentially transformative step for AcroMeta Group, marking its entry into the high-growth nickel sector in Indonesia. While the transaction remains at a preliminary stage, investors should closely monitor developments, especially around due diligence outcomes and any definitive agreements signed in the coming months. The nickel sector’s strategic importance and the possibility of controlling a concession in Indonesia could drive investor interest and impact share valuations if the deal proceeds.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. All investments carry risks. There is no guarantee that the proposed transaction will be completed. Investors are encouraged to conduct their own due diligence and consult with a professional adviser before making any investment decisions. The Singapore Exchange has not reviewed or approved the contents of this article.

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