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inar Mas Group announced a US$1.5 billion share swap deal between its coal mining subsidiary and a small forestry firm listed on the Singapore Stock Exchange, which will facilitate a backdoor listing to the stock market.

The group’s subsidiary, PT Dian Swastatika Sentosa Tbk (DSSA), said on Friday that it agreed to exchange all of its 67 percent stake in PT Golden Energy Mines Tbk (GEMS) with a 92.77 percent controlling stake in Singapore’s United Fiber System Ltd (UFS) in a reverse takeover scheme.

United Fiber sold 44.28 billion shares at S$0.035 apiece, while GEMS sold its 3.94 billion shares at a premium price of Rp 2,750 a share, Dian Swastatika said in a statement published in local newspapers on Friday.

“The company is expected to take the following benefits: becoming a regional player in Asia, widening access to better financing sources for both the company and GEMS, and increasing the opportunity to expand the coal business,” Dian Swastatika explained.

“In addition, boosting liquidity for trading of GEMS shares, capitalizing on the strategic value of the company and GEMS,” it added.

United Fiber’s shares jumped more than 70 percent on the announcement, ending the day up 39.29 percent to S$0.039 apiece at Singapore trading.

Shares of Golden Energy and Dian Swastatika were also lifted by 1.92 and 6.79 percent at Friday’s close at the Indonesia Stock Exchange, respectively at Rp 11,800 and Rp 2,650 apiece.

Carey Wong, a commodities analyst at OCBC Investment Research in Singapore, said that being a Singapore-listed company would give access to the capital market. “If the market is keen enough on the sector, it’s quite easy for them to add on assets,” he said as quoted by Reuters.

“There are a lot of unlisted private coal mines in Indonesia that could be added on. Indonesia is sitting on a pretty rich vein of coal.”

Sinar Mas Group, one of Indonesia’s largest conglomerates with interests in pulp and paper, and owned by one of the country’s richest business tycoons, Eka Tjipta Widjaja, controls Golden Energy through Dian Swastatika.

An initial public offering (IPO) of Golden Energy, a holding firm for several coal companies, was the biggest for coal mining last year, raising $245 million.

After the deal, United Fiber will own a 67 percent stake in Golden Energy Mines and Dian Swastatika will own a 92.77 percent stake in United Fiber. Dian Swastatika, which is 60 percent owned by Sinar Mas Group, previously owned the direct stake in Golden Energy Mines.

United Fiber’s board of directors said the deal was based on Golden Energy’s business prospects, which United Fiber would focus on expanding in relation to its coal mining business.

“The board believes that the proposed acquisition would also enhance shareholder value for the company as well as strengthen the balance sheet of the company,” United Fiber’s board of directors said in a company disclosure document submitted to the Singapore Stock Exchange.

— JP/Esther Samboh