- We are positive on First Resources (SGX:EB5)’s mandatory takeover (MTO) of Austindo Nusantara Jaya (ANJ). We expect its earnings to remain robust, from the full impact of the ANJ acquisition and synergies upon consolidation of costing strategies.
- - Read this at SGinvestors.io -
MTO for remaining ANJ shares.
- Following First Resources’ completion of its acquisition of 91% of ANJ, the company announced that it will conduct a mandatory tender offer to purchase the remaining shares it does not own – excluding the 2.6% stake acquired previously through the open market by a majority-owned subsidiary, Ciliandra Perkasa.
- - Read this at SGinvestors.io -
We expect First Resources to be able to complete this MTO by the end of 3Q25.
- We do not expect it to maintain the listing status of ANJ, as the latter already does not meet the free float requirement (7.5%) to remain listed on the IDX.
- Overall, we are positive on this development. We have already seen the benefit of the consolidation of two months of ANJ’s earnings within First Resources in the 2Q25 results just released, with 2Q25 nucleus FFB output jumping 32% q-o-q (+33% y-o-y), bringing 1H25 growth to 23% y-o-y. Excluding ANJ, First Resources’ 1H25 nucleus FFB would have grown at just 13% y-o-y.
Cost synergies to be seen soon.
- Read more at SGinvestors.io.
