LAWFUEL – The Law Newswire – Holman Fenwick & Willan’s (HFW) client PT Bumi Resources Tbk has sold a 30% stake in its Coal Companies to Tata Power.
Indonesian listed company PT Bumi Resources Tbk, signed definitive agreements for the sale of a 30% stake in PT Kaltim Prima Coal (“KPC”), PT Arutmin Indonesia (“Arutmin”) and related companies to The Tata Power Company Limited. The Indonesian coal mining companies are together among the top three largest exporting thermal coal mines in the world. The purchase price is around US$ 1.3 billion including working capital and other adjustments. The sale will close in approximately three months subject to shareholder approvals and will be the largest M&A deal done in South East Asia in the mining sector. The sale was by tender and documents were negotiated in parallel with several bidders, with Tata Power coming out as the winner.
The Tata Power Company Limited is India’s largest privately owned utility company. This purchase supports Tata Power’s proposed ultra-mega coal-fired projects on the west coast of India over the next five years.
HFW represented Bumi Resources on the sale and on a related long term coal supply agreement. Lawyers were involved from several offices. In Singapore the team was led by partner Alistair Duffield, supported by lawyers Dipa Swaminathan, Georgina Cowdroy, Marius Toime and Tahirah Ara. The partners involved in London were Nick Hutton and Samantha Roberts, and, in Dubai, partner Daniel Chung.
Alistair Duffield commented, “The Firm has teams in Singapore, Hong Kong, Melbourne and London with specific, in-depth, expertise in the coal industry. This transaction demonstrates the value of our investment in building this expertise, and our ability to execute major complex transactions in the sector.”
