Sale of Indonesian gold miner Archi put on hold

PT Rajawali Corp., an Indonesian conglomerate owned by tycoon Peter Sondakh, has halted a potential sale of its controlling interest in gold miner PT Archi Indonesia, according to people with knowledge of the matter.

The decision to pause the process was made because Archi’s financial position has improved following an increase in the price of gold, the people said, asking not to be identified discussing confidential information. Archi’s first-quarter net income was $10.3 million, reversing a $4.2 million loss a year earlier.

Gold has risen almost 30% this year, buoyed by its appeal as a haven and buying by central banks. Jakarta-listed Archi had climbed 146% from the start of the year through Thursday.

Archi then jumped as much as 19% Friday, trading at the highest level since October 2021 and taking its year-to-date gain to about 180%. Its market value also rose above $1 billion.

Jakarta-based Rajawali, which holds a stake of about 85% in Archi, had been working with an adviser and seeking a valuation of about $1 billion for the company, Bloomberg News reported in 2023.

Considerations are ongoing and Rajawali may still decide to sell, the people said. Representatives for Rajawali didn’t respond to requests for comment.

Founded in 2000, Archi owns the Toka Tindung mine in North Sulawesi and is one of the biggest pure-play gold producers in Indonesia and Southeast Asia, according to its website. The company raised about 2.8 trillion rupiah ($170 million) in its initial public offering in 2021.

(By Elffie Chew and Manuel Baigorri)