Milbank Advises Sellers in Carrefour Indonesia Acquisition of a 75% Stake in PT Alfa Retailindo
SINGAPORE, February 22, 2008 – In a transaction valued at US$71.3 million (IDR 674 billion) PT Carrefour Indonesia (“Carrefour”) has acquired a 75% equity interest in Indonesian grocery retailer PT Alfa Retailindo Tbk (“Alfa”). The deal, which closed on January 21, 2008, further expands international retailer Carrefour’s growth in emerging markets. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by Singapore managing partner David Zemans, represented the sellers and majority shareholders, PT Sigmantara Alfindo and Prime Horizon Pte Ltd., in negotiating, structuring and closing the transaction.
Milbank’s Zemans noted, “This transaction is consistent with the continuing interest of strategic investors and the private equity sector in Indonesia. Our depth of experience in Indonesia combined with our established capabilities in mergers and acquisitions and private equity made us well suited to advise the sellers in this transaction. For years, Milbank has played a leading role in many of the most significant M&A and capital markets transactions in Indonesia.” Milbank advised the consortium of private equity investors that acquired a majority stake in Alfa in 2006.
In addition to Mr. Zemans, the Milbank team representing the sellers included associates Pablo Malay and Alison Sawers, both in the Firm’s Singapore office.
About the Transaction
PT Carrefour Indonesia agreed, in a transaction signed on January 21, 2008, to acquire a 75% equity interest in PT Alfa Retailindo Tbk from its majority shareholders Prime Horizon Pte Ltd. and PT Sigmantara Alfindo for a purchase price of US$71.3 million (IDR 674 billion). The price per share was valued at IDR 1,921 in cash; approximately 351 million shares were acquired in this transaction. Prime Horizon Pte Ltd. sold a 40% interest and PT Sigmantara Alfindo sold a 35% stake.
About PT Alfa Retailindo
Headquartered in Jakarta, PT Alfa Retailindo is a leading grocery retailer in Indonesia, operating 29 supermarkets and stores across the country. Prior to its acquisition by Carrefour, Alfa’s majority stakeholders were investment holding companies Prime Horizon Pte Ltd. and PT Sigmantara Alfindo.
About PT Carrefour Indonesia
PT Carrefour Indonesia, which operates 38 grocery stores in Indonesia, is a unit of the Carrefour group. Based in France, the Carrefour group is the world’s second largest grocery retailer with a presence in 30 countries.
About Milbank
Milbank has been actively involved in many of Indonesia’s most high profile M&A and financing transactions, including the US$1 billion PT Adaro acquisition and its related financings and recent refinancings; the Indonesian Government’s sale of its 42% interest in Indosat for approximately US$630 million (the largest privatization completed in Indonesia at the time); and the US$560 million acquisition of a majority stake in Bank Central Asia. The Firm’s recent Indonesian representations also include PT Ilthabi Bara Utama (“IBU”) in connection with the US$135 million structured equity-linked private financing for an Indonesian coal mine owned by IBU, recently named Indonesia Deal of the Year 2007 by Finance Asia.
Milbank, Tweed, Hadley & McCloy LLP is a leading global law firm that for more than 140 years has provided innovative legal solutions in many of the world’s largest, most complex and innovative corporate transactions. Our transactional expertise includes Capital Markets, Corporate Finance, Project Finance, Acquisition Finance, and other major fields of law practice. Headquartered in New York, Milbank has 10 offices worldwide, including Beijing, Hong Kong, Singapore and Tokyo.