By Megan Cheah
Geo Energy Resources shares rose sharply Monday after a substantial shareholder said it would invest in the company's infrastructure business at a US$1.5 billion valuation.
The Indonesian coal producer's stock rose as much as 11% to 68 Singapore cents, equivalent to 54 U.S. cents, the counter's record intraday high. The shares have since pared gains to trade 4.1% higher, bringing year-to-date gains to around 51%.
Resource Invest AG has signed a binding term sheet to invest in Indonesia-based Marga Bara Jaya, which is close to completing its integrated infrastructure project in South Sumatra, Indonesia, Geo Energy said.
The term sheet values Marga Bara Jaya at US$1.5 billion, though the specific investment amount, considered to be substantial, has yet to be finalized, said Geo Energy, which owns three mining concessions through its subsidiaries in Kalimantan and South Sumatra.
The valuation is solely attributed to Marga Bara Jaya, which is only one component of Geo Energy's asset portfolio, the company said. In comparison, Geo Energy's market capitalization as of last Friday's close was 1.09 billion Singapore dollars, equivalent to US$860.1 million, based on shares outstanding, LSEG data showed.
Geo Energy's group executive chair and chief executive, Charles Antonny Melati, said the investment in Marga Bara Jaya at this valuation suggests the larger group is "largely undervalued."
The initial sum from ResInvest is expected in the third quarter, with the remainder to come next year, the company added.
ResInvest, a Swiss trading and investment company that owns around 5.4% in Geo Energy, specializes in dry bulk commodities and freight.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
May 10, 2026 22:08 ET (02:08 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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