Herbert Smith and its associated Indonesian firm Hiswara Bunjamin & Tandjung (HBT), have advised Banpu, Thailand’s largest coal miner, on the US, UK, Singapore and Indonesian law aspects of the sale of an 8.7% stake in its listed Indonesian subsidiary, PT Indo Tambangraya Megah Tbk (ITMG), for US$400 million.
The transaction launched and priced overnight on 1 September and is Indonesia’s second largest block trade in the last decade. Upon completion of the sale, Banpu will still retain a stake in ITMG of about 65%.
Banpu was established in Thailand in 1983 and was listed on the Stock Exchange of Thailand in 1989. The company focuses on power project development in Thailand, coal mining in Indonesia, port operations and industrial minerals.
The Herbert Smith corporate team was led by Hong Kong partner John Moore and senior associate Siddhartha Sivaramakrishnan, together with Singapore of counsel Kwok Hon Yee. The HBT/Herbert Smith team in Jakarta was led by partners David Dawborn and Iril Hiswara.
Siddhartha Sivaramakrishnan commented:
“We are delighted to have assisted Banpu on this important transaction, particularly in the current challenging market conditions. This transaction showcases our strength in cross border Asian capital markets financings, particularly our on the ground US, UK, Singapore and Indonesian law capabilities that enable us to provide seamless service to our international clients.”
David Dawborn added:
“This significant deal once again emphasises the high quality reputation of Herbert Smith and HBT, through our successful 10 year association, as the leading corporate legal practice for Indonesian transactions for international clients. There is a high level of investor activity in Indonesia currently and it is increasing steadily. Our long-standing expertise in cross border transactions in Indonesia is well recognised by sophisticated foreign investors and financial institutions.”
Goldman Sachs ran the international bookbuilding. Bahana Securities, Mandiri Sekuritas and Danareksa Securities handled the local trading process.
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