MDKA - PBJ to become the controlling shareholders of MAP

MDKA - PBJ to become the controlling shareholders of MAP Merdeka Copper Gold (MDKA) is involved in affiliated transactions through Merdeka Serasi Jaya, engaging with two key parties: Pani Bersama Jaya (PBJ) and Mentari Alam Persada (MAP). These proposed transactions include: 1) PBJ subscribing to shares issued by MAP, and 2) PBJ as a buyer and the Company as a seller that sells its shares in MAP. The aim is to secure control over MAP through PBJ, aligning with shareholder interests, particularly in advancing the mining business by enhancing infrastructure such as MAP’s mining roads. Notably, PBJ is a Controlled Company of Merdeka Serasi Jaya, directly owned at 70.05%, and MAP, also a Controlled Company, is owned directly and indirectly at 99.99%. These transactions are valued at a maximum of IDR229.5 bn. (Source: Company) Comment: We are neutral on the transaction, both MAP and PBJ could have a better operation efficiency and advancement in it's project development. Moreover, after the transaction MDKA's effective stake will reduced and the company could obtained fresh cash of IDR229.5 bn in it's holding level.