PMAHB inks MoU With PT BAI

The Board of Directors of PRESS METAL ALUMINIUM HOLDINGS BERHAD announced that PMAHB had on 31 May 2019. entered into a memorandum of understanding with PT BAI and its direct and indirect shareholders, which are Nanshan Aluminium. Redstooe and PT MKU. The MOU sets out the principles for the parties to further discuss the proposed capital injection by PMAHB into PT BAI via a subscription of approximately 25% of PT BAI shares by PMAHB ( Proposed Subscription').

PT BAI was established as a limited liability foreign investment company (i.e.. PMA (Penanaman Modal Asing) company) in Indonesia on 16 April 2012 and is located at Galang Batang. Gunung Kijang Sub-district. Gunung Kijang District. Bintan Regency. Riau Islands Province.

PT BAI is principally involved in the production of non-ferrous metals. PT BAI is currently in the midst of constructing a 1-million ton alumina refinery plant together with the necessary facilities in Galang Batang, with plans for a second phase.

The authorised capital of PT BAI is Indonesian Rupiah flDR') 3.000 billion, while its issued and paid up capital is IDR 994.1 billion. The shareholders of PT BAI are Global Aluminium International Re. Ltd. (’GAT) (99%) and PT MKU (1%). The shareholders of GA1 are Nanshan Aluminium Singapore Co. Pte. Ltd. ("Nanshan Singapore’) (95%) and Redstone (5%). Nanshan Singapore is wholly-owned by Nanshan Aluminium.

The Directors of PT BAI are Mr Song Jiangbo. Mr Santony. Mr Liu Qinghua and Mr Hao Wei Song.

PMAHB and the Parties have entered into the MOU to agree to further discuss and negotiate the terms of the Proposed Subscription prior to signing any definitive agreement in respect of the same.
The salient terms of the MOU are as follows:
(a) PMAHB will hold approximately 25% of the share capital of PT BAI upon completion of the Proposed Subscription;
(b) the valuation applied for the Proposed Subscription will be based on the value of PT BAl's shareholders' equity as at 31 May 2019 after final due diligence review: and
(c) PT BAI's implementation of the second phase of the Construction is subject to the receipt of approval of the relevant regulatory authorities in relation to the development in Galang Batang. The amount equivalent to the capital investment made by PMAHB into PT BAI shall be returned to PMAHB where these regulatory approvals are not obtained.

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