Longpan Technology (02465) subsidiary plans to sell 76% of the Indonesian Phase II lithium iron phosphate cathode materials project

Zhitong Finance App News, Longpan Technology (02465) announced that on October 22, 2026, LBM AP (an indirect non-wholly-owned subsidiary of the company) plans to sell 76% of PT LBM Energi Baru's shares to Kinetiq at a total cost of US$31.92 million. Upon completion, the buyer will hold 76% of the target company's issued shares, while the group will hold 24% of the target company's issued shares through the seller and LBM SG.

As far as the share purchase agreement is concerned, LBM AP, LBM SG, and Kinetiq have concluded a shareholder agreement with the target company on October 22, 2026, and the agreement will take effect on the completion date. Under the shareholders' agreement, Kinetiq was granted a put option. At any time during the put option period, Kinetiq may require LBM AP to purchase all (but not only part) of the put shares at a put price of at least 36 million US dollars when the put exercise conditions occur.

According to the announcement, the company intends to use the net proceeds from the sale as general working capital of LBM AP to support its daily operations and general corporate purposes. The Board believes that using the net proceeds as working capital for LBM AP will strengthen LBM AP's financial position and enhance its liquidity and operational flexibility.

Since the group's joint shareholding ratio will fall below the 25% threshold under OBBBA, it is expected that the target company will no longer be a PFE and maintain a non-PFE status. Under current US policy restrictions, this adjustment is the most feasible solution the company can currently adopt, and is necessary and reasonable. The sale will also enable the Group to realise part of its investment in the target company. As the Group will retain a total of 24% of its shares in the target company, it will continue to benefit from the future growth and development of the target company's lithium iron phosphate cathode material production facility in Indonesia.

According to reports, the target company is mainly engaged in research, production and sales of lithium iron phosphate cathode materials. The assets related to the sale are the Indonesian Phase II plant, a 90,000-ton lithium iron phosphate cathode material production facility developed by the target company in Indonesia.