Geo Energy buys majority stake in two Indonesian shipping companies for US$127.5 million

Indonesian coal producer Geo Energy said on Thursday (Jan 8) that it has completed its acquisition of majority stakes in two Indonesian shipping companies.

The deal – to buy 51 per cent stakes in Trans Maritim Pratam and Bahari Segara Maritim – with a consideration of US$127.5 million (S$163.8 million), was first proposed in August 2025.

Resolutions pertaining to the acquisition were passed at an extraordinary general meeting in November 2025.

Geo Energy previously said that the consideration includes a cash payment of US$23.5 million and an assignment of receivables amounting to about US$18 million.

The consideration also includes an issuance of some 275 million ordinary shares of the group, worth around US$86 million, at an issuance price of S$0.40 apiece.

Geo Energy said the consideration shares were issued to the sellers on Thursday.

As part of the agreement, the sellers will not be able to sell, encumber or dispose of the consideration shares for one year from the issuance date, without Geo Energy’s consent.

The acquired companies specialise in logistics for commodities, including coal and other non-mining products in Indonesia, through the building and managing of tugboats and barges.

Their capabilities will support Geo Energy’s growing production at the Triaryani coal mine, as well as its operations at the Marga Bara Jaya jetty. The group previously said this would enhance delivery reliability for coal offtake and lower transportation costs.

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Established in 2008, Geo Energy is a major energy group in Indonesia that focuses on low-cost production of coal assets. The group was listed on the mainboard of the Singapore Exchange in 2012.

Shares of Geo Energy closed flat on Thursday at S$0.41, before the news.

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