Bayan gained as much as 12 percent before trading 2.2 percent higher at 18,300 rupiah as of 11:56 a.m. local time. The benchmark Jakarta Composite Index added 0.6 percent. Kangaroo Resources rallied 16 percent to 22 Australian cents.

Bayan said late yesterday it signed an agreement to inject nine coal mining concessions into the Burswood, Western Australia-based metals explorer and producer. Kangaroo Resources will issue new shares to the Indonesian company giving it a controlling interest. Indonesia is Asia’s biggest exporter of thermal coal, used in power stations.

Indonesian companies are looking for “more international exposure” via backdoor listings to get easier access to capital, Surabhi Chopra, an analyst at PT Bahana Securities, said by phone from Jakarta. The transaction “would be positive for Bayan” because it will add another 116 million tons of reserves, the analyst said.

PT Bumi Resources, Indonesia’s largest coal producer, will list in London after Nathaniel Rothschild’s Vallar Plc agreed last month to invest $3 billion in the company and PT Berau Coal Energy. Vallar will be renamed Bumi Plc and controlled by PT Bakrie & Brothers, an investment company controlled by the family of billionaire and politician Aburizal Bakrie.

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