Backdoor Listing of A Nickel Mining Company: A Case Study of Global Company to an Indonesian Company

This study focuses on the feasibility and valuation of acquiring an Indonesian publicly listed nickel mining company—PT Central Omega Resources Tbk (DKFT)—as a backdoor listing strategy for The Great Company (TGC), a Chinese nickel precursor producer. By applying strategic analysis tools (PESTEL, SWOT, Porter’s Five Forces) and a Discounted Cash Flow (DCF) model, the study estimates DKFT’s fair value, reasonable acquisition premium, and key financial indicators such as NPV, IRR, PI, and payback period. Sensitivity and scenario analyses are conducted to evaluate the impact of critical factors such as nickel price, cost savings, and production volume on the project's value. Findings indicate a positive NPV of IDR 375.5 billion, IRR of 14.3%, and a payback period of 3.43 years under a WACC of 6.6%. The acquisition appears financially sound. However, price volatility and integration effectiveness remain key risks. The study concludes that the proposed acquisition is strategically and financially viable and recommends proceeding with the deal under reasonable premium assumptions and strong risk monitoring.