Zhongwei New Materials (02579) plans to restructure Indonesian nickel mines with the intention of seizing control of DDL and ANHI

According to the Zhitong Finance App, Zhongwei New Materials (02579) announced that on October 22, 2026, Zhongwei Hong Kong, an indirect wholly-owned subsidiary of the company, plans to acquire 53.3% of HML's shares from Evergreen at a cost of about US$108 million. ANHI plans to issue up to 100 billion new ANHI shares through a stock offering, at a maximum cost of US$463 million. The company's indirect wholly-owned subsidiary EEP plans to subscribe for additional ANHI shares at cash cost. ANHI plans to acquire 100% of DDL's shares from HML at a cash cost of US$324 million.

After completion of the acquisition, capital increase, and DDL transfer (collectively, “restructuring matters”), the company will fully own HML, ANHI will fully own DDL, and the company expects to hold no less than 50% of ANHI (and DDL) interests, subject to the results of the share offering.

According to the announcement, the company has an urgent need to obtain control of DDL and ANHI. This move will enable the company to obtain control of suitable nickel assets in a timely manner. Such assets are increasingly scarce and highly sought after, especially in view of the strategic importance of ensuring long-term resource reserves (currently, KS and KKU are companies engaged in nickel mining activities in Indonesia, with DDL holding 40.5% and ANHI holding 34.5 percent interest, respectively. Therefore, they are not subsidiaries of the company, and the company has no control over them). After considering the increasing competition for high-quality nickel ore assets and the continued increase in commodity price trends, the company believes that a prudent commercial approach is to proceed without undue delay.

The company will be able to combine the nickel ore interests currently held in a decentralized manner through ANHI, HML and DDL into a single operating and holding platform under the joint control of the company. The move will simplify the holding and governance structure, improve management and operational coordination, and support the company's stated strategy of vertical integration into Indonesia's upstream nickel resources.

The company obtained control of DDL and ANHI to establish a framework that can support continued compliance with applicable Indonesian investment and mining regulations, and to take into account the gradual increase in divestment requirements as the mine enters the latter stages of production. The purpose of the restructuring is to support the company's long-term ownership and control of nickel assets without being bound by foreign ownership divestment requirements under relevant Indonesian laws and regulations, while retaining flexibility for future financing and investment.