Coal billionaire Low Tuck Kwong loses a third of his fortune after selling Bayan Resources stake

On October 7, billionaire Low Tuck Kwong sold a 30.25% stake in Bayan Resources, triggering a significant drop in his net worth. The sale reduced his fortune by a third, marking the largest one-day loss he has ever experienced and the steepest decline among global billionaires according to the Bloomberg Billionaires Index. As of the index's latest estimate, Low's wealth has plummeted from $15 billion at the start of the year to $11.3 billion, reflecting a halving of his fortune.

The index attributes 32% of his net worth to his remaining stake in Bayan Resources and his other business holdings, including cash assets.

Bayan Resources, a dominant player in Indonesia's thermal coal industry, had seen its founder's share dwindle from 40.15% to 9.95% following the Oct. 7 transaction. His daughter Elaine's stake also decreased from 22.1% to 22.05% in the same period. The sale was initially agreed upon in September for a 30% stake, but was amended earlier this month to allow for a larger portion of Bayan to be sold, according to financial data platform IDN Financials.

Jhonlin Baratama, the investment vehicle of fellow Indonesian tycoon Andi Syamsuddin Arsyad, commonly known as Haji Isam, acquired the shares from Low and his daughter. Bayan Resources, founded by Low in 2004, is one of Indonesia's largest and most profitable thermal coal producers. The company reported $943 million in net profit on $3.43 billion in revenue last year, and mined approximately 68 million tonnes of coal.

Despite recent setbacks, including the recent declaration of force majeure on coal supply obligations by the company and its subsidiaries due to revisions in mining quotas, Bayan Resources remains a key player in Indonesia's coal market.