Herbert Smith and its associated Indonesian law firm Hiswara Bunjamin & Tandjung (HBT) have advised eForce Holdings Limited (“eForce”; stock code: 0943.HK) on a very substantial acquisition of Fastport Investments Holdings Limited (“Fastport”) that indirectly holds a mining concession right over the PT Bara coal mine, located near the town of Ampah in Indonesia.
The consideration of HK$500 million (approximately US$64 million) was satisfied by eForce issuing two series of convertible bonds in favour of the vendor. The PT Bara coal mine covers an area of approximately 4,093 hectares. The total estimated coal resources of the project is 26.3 million tonnes.
The acquisition was undertaken over a period when the new Indonesian mining laws were being implemented. There were complex transitional issues, including relating to the conversion of old order mining licences (KPs) to new order mining licences (IUPs), which required expert advice from our Indonesian team.
The transaction was led by corporate partner Carolyn Sng in Hong Kong and assisted by Victor Ding and Athena Young. The energy team was led by partner Anna Howell and Hilary Lau in Hong Kong and assisted by Phoebe Yuen. Brian Scott, Mira Fadhya, Alison Battisson and Sally Austen in the HBT/Herbert Smith team in Jakarta advised on the Indonesian aspects of the transaction.
Carolyn Sng commented:
“This deal once again demonstrates the breadth and depth of the Herbert Smith offering. We brought together country, industry and different practice area expertise to deliver a seamless service for our client.”
Hilary Lau commented:
“We are seeing increasing interest among Greater China companies for acquisitions of overseas natural resources assets. With an energy team on the ground in almost all our offices, we are able to provide expert advice and assistance to our clients wherever they need.”
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