Resources Global Development (SGX:V7R) plans to subscribe to its pro-rata entitlement of around 111.8 million shares in Indonesia-listed PT Singaraja Putra (IDX:SINI) for around SG$40 million, according to a Wednesday filing with the Singapore Exchange.
Shares of the coal company were up over 9% in Thursday trading.
The company currently has a 15.49% stake in Singaraja through its subsidiary, Batubara Development.
The subscription exercise will enable Singaraja to raise the funds needed to acquire a majority stake in Kemilau Mulia Sakti and to repay existing debt.
The company will now look to convene an extraordinary general meeting to secure shareholder approval.