ITMG establishes subsidiary to support mineral business expansion
PT ITM Mineral Investama was formed with PT ITM Batubara Utama, a subsidiary in which ITMG holds a 99.99 per cent stake.
PT Indo Tambangraya Megah Tbk (ITMG) has established PT ITM Mineral Investama (IMI) alongside its subsidiary PT ITM Batubara Utama (IBU), according to a disclosure to the Indonesia Stock Exchange. Management said the new company would support the integrated expansion of ITMG’s mineral business portfolio.
ITMG owns 99.99 per cent of IBU. The company classified the establishment of IMI as an affiliated transaction because it was carried out with a subsidiary under its control.
Management said shareholder approval was not required. It cited both the transaction’s value, which did not exceed the applicable equity threshold requiring such approval, and the fact that the transaction involved ITMG and a controlled subsidiary.
The company said the move was consistent with its existing business activities. These include coal mining, electricity support services, wholesale trade on a fee or contract basis, the manufacture of coal products and other mining support activities.
