EcoPro Materials Secures $297 Million Investment for Indonesian Nickel Smelting Expansion

EcoPro Materials, a precursor production subsidiary of EcoPro Group, has secured $297 million (KRW 400 billion) in investment to expand into the nickel smelting industry in Indonesia. The company has secured a total of $288 million (KRW 389 billion) through a third-party allotment capital increase.

The majority of the funds will be used to acquire a 28% stake in the Indonesian nickel smelting company, PT. Green Eco Nickel, and to operate the smelting facility allowing EcoPro to gain additional nickel proportional to its shareholding. Established in June 2023, Green Eco Nickel is a subsidiary of China's GEM, with whom EcoPro has an existing partnership. With EcoPro Materials acquiring an additional 28%, it becomes the largest shareholder and will secure a 38% share at the group level. Green Eco Nickel has a nickel metal production capacity of approximately 20,000 tons annually.

The acquisition of Green Eco Nickel's stake and the business combination report are expected to be completed in April 2025. This investment represents 6.7% of EcoPro Materials' equity capital. According to the terms of the agreement, if PT. Green Eco Nickel fails to meet production conditions, EcoPro Materials will have the option to exercise a put option at the acquisition price for its holdings.

The fundraising was achieved through the issuance of redeemable convertible preferred shares (RCPS). Investors can choose to redeem the funds with interest either three or five years later, or convert them into common shares starting April 9, 2026. Major investors include IMM Investment, IMM Credit Solutions, JKL Partners, and Mast Partners. The funds raised are recognized as full capital in accounting.