PT Fortune Indonesia Tbk (FORU) has announced a significant business transformation step toward the coking coal mining sector. This corporate action is executed through a rights issue (HMETD) mechanism with a fantastic value of IDR 27.1 trillion to execute the acquisition of PT Borneo Prima (BP) shares via an in-kind contribution. This strategic move is projected to fully overhaul the financial structure and drastically accelerate the company's revenue growth.

According to an information disclosure on the Indonesia Stock Exchange (IDX), PT Borneo Prima is a metallurgical coal mining entity holding a 15,000-hectare concession right in Murung Raya Regency, Central Kalimantan. Based on a JORC 2012-compliant report by SMG Consultant, Borneo Prima holds total high-quality coal reserves (7,850 kcal/kg) reaching 87.7 million tonnes. This value consists of proven reserves of 42.4 million tonnes and probable reserves of 45.3 million tonnes.

FORU management is very optimistic about the prospects of coking coal due to its vital role as a primary raw material in steel manufacturing, unlike thermal coal which faces a global declining demand trend. Market demand is expected to continue strengthening along with the rapid expansion of the steel industry in Southeast Asia and India. In the domestic market, producer associations note that national production currently supplies only about 20 percent of total domestic demand, making market opportunities very broad with commodity price projections remaining above US$200 per metric tonne over the next five years.

This acquisition is projected to bring a sharp surge in FORU's consolidated financial performance. Total corporate assets are estimated to soar from IDR 33.55 billion to IDR 8.71 trillion, while equity will be boosted to IDR 7.15 trillion. Operationally, FORU's business revenue is projected to skyrocket up to 35-fold to IDR 195.66 billion, directly turning around the company's performance from a net loss of IDR 4.15 billion into a net profit of IDR 11.94 billion.

To facilitate this major expansion plan, FORU will issue a maximum of 215.09 billion new shares at an exercise price of IDR 126 per share. The largest portion of the rights issue proceeds, amounting to IDR 20.82 trillion (76.81 percent), is allocated specifically for the acquisition of Borneo Prima shares. Meanwhile, the remaining funds raised will be channeled as working capital loans to support smooth mining operations on the ground.