Deal is one of largest M&A deals in Southeast Asia
In another major transaction in Indonesia, Milbank, Tweed, Hadley & McCloy LLP advised a joint venture between PT AP Investment and PT Medco Energi Internasional Tbk (MedcoEnergi) in connection with its acquisition and related financings of a controlling stake in mining company PT Amman Mineral Nusa Tenggara (previously PT Newmont Nusa Tenggara) from, among other vendors, Newmont Mining Corporation and Sumitomo Corporation. The acquisition was financed through a combination of senior debt provided by the three largest state-owned banks in Indonesia, mezzanine debt provided by a mix of offshore lenders, vendor financings and sponsor equity. The transaction, valued at US$2.1 billion, is one of Southeast Asia’s largest M&A deals in 2016.
The transaction is viewed as setting an important precedent for Indonesia both as a successful collaboration between Indonesian companies, state-owned banks and the government and as an international deal in the Indonesian natural resource sector that uses a unique and sophisticated structure.
The transaction further strengthens the position of the sponsors as leaders in the energy and natural resources sector in Indonesia.
The Singapore-based team included partners Naomi Ishikawa, Giles Kennedy and David Zemans, associates Cristy Cross, James Kilner and Lyndon Plothow with support from London partners Tom Canning, James Warbey and Stuart Harray, special counsel Matthew Mortimer, of counsel Patrick Holmes, and associates Sarah Ullathorne and Robert Wyse Jackson.
The acquisition is the latest in a string of successful deals in Indonesia by our team in Asia. Earlier this year, the firm advised a consortium of international lenders on the development and financing of a $4.3 billion electricity generation plant in Central Java, which on completion will be one of the largest IPPs in Asia. The firm was named Indonesia International Law Firm of the Year by Chambers Asia-Pacific in 2015 and 2013.
