Geo Energy Resources (Geo Energy), a leading Indonesian coal producer listed on the mainboard of the SGX, has secured an option to become the major shareholder of CAPL an Electric Vehicle (EV) business in Indonesia, through an initial investment of US$4 million
Headquartered in Singapore with offices and a zero-emissions production facility in Indonesia, CAPL aims to sell 10 million electric motorcycles in the region over the next decade.
To date, CAPL has successfully developed three electric motorcycle models and has delivered more than 1,000 motorcycles in Indonesia, Malaysia, and Vietnam. It has established a strong foothold in Indonesia with the potential to significantly scale up its presence in the region’s EV industry.
CAPL is backed by investors and shareholders, DeClout Ventures and Vmoto. DeClout Ventures is the corporate venture arm of Exeo Global, the global headquarters facilitating the operational and strategic management of overseas subsidiaries for Tokyo Stock Exchange Prime listed EXEO Group in Japan.
Geo Energy’s initial investment of US$4 million is disbursed via a loan with the option to convert at a pre-money valuation of US$40 million. The agreement will also give Geo Energy an option to enter into further agreements to increase its capital investment for up to an additional US$36 million in CAPL to become the majority shareholder.
In a statement, Geo Energy said the investment into CAPL is aligned with its strategy to diversify its portfolio by investing in sustainable businesses. The coal producer added that the move will also elevate its profile, provide an additional stream of income, and widen its reach toward an international market while meeting its sustainability and environment, social, and governance (ESG) targets.
Commenting on the investment, Charles Antonny Melati, Executive Chairman and Chief Executive Officer of Geo Energy stated: “The Group understands that pollution and healthy environment is a growing concern in Indonesia, particularly in Jakarta and Jabodetabek area. Jakarta topped the list as the world’s most polluted city and registers unhealthy air pollution levels nearly every day. To play our part to improve the environment, the Group has proactively explored business opportunities to invest in renewable energy.”
“After careful deliberation and analysis, the Group has decided to expand its business through an investment in CAPL. This will position the Group as a forward-looking leader in the effort towards cleaner and sustainable energy sources. The investment will scale up the Group’s financial resilience with the additional stream of revenue and income and contribute to a greener and improved living environment for our future generations,” Melati added.