DIGIVESTASI - PT Adaro Energy Indonesia Tbk. (ADRO) plans to propose a company name change to its shareholders during an Extraordinary General Meeting of Shareholders (EGMS) scheduled for Monday, November 18, 2024. According to information released by the Indonesia Stock Exchange (IDX), the meeting will be held both physically and electronically, with voting conducted via the *Electronic General Meeting System* KSEI (eASY.KSEI).

The main agenda of the meeting is to seek shareholder approval for the company’s name change, which will be followed by a revision of Article 1, paragraph (1) of the company’s articles of association. Additionally, ADRO plans to discuss the distribution of a portion of the company's retained earnings as an additional final cash dividend to shareholders, with the amount based on the consolidated financial statements as of December 31, 2023.

ADRO has stated that no separate official invitations will be sent out, and the meeting notice itself is considered the official invitation. Due to limited capacity, only 50 shareholders will be able to attend the meeting in person, and no souvenirs, food, or beverages will be provided.

In another strategic move, ADRO also plans to sell its entire stake in PT Adaro Andalan Indonesia (AAI), a subsidiary in which it holds a 99.99% ownership. The estimated transaction value for the sale of AAI shares is expected to reach US$2.45 billion, equivalent to IDR 37.6 trillion, representing 31.8% of Adaro's total equity. AAI was previously known as PT Alam Tri Abadi.

Adaro intends to separate its thermal coal mining business under AAI from its Adaro Minerals and Adaro Green business pillars, in order to maintain stronger business synergies. This move is expected to maximize the performance of each company by focusing on the development of their core strengths.

The separation also aims to improve access to more competitive funding, provide broader investment opportunities for public investors, and facilitate the development of environmentally friendly projects.

As a reference, ADRO holds shares in several thermal coal companies, including PT Adaro Indonesia, PT Paramitha Cipta Sarana, and PT Semesta Centramas, which produce medium-calorie coal with low pollutant levels. In addition, AAI holds shares in two thermal coal mining companies currently under development: PT Pari Coal and PT Ratah Coal.

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