Thursday, December 23, 2010

CIC also invest in Delta Dunia

China Investment Corporation (CIC) will join the consortium of TPG Capital and Government of Singapore Investment Corporation (GIC) to indirectly acquire shares in PT Delta Dunia Makmur Tbk.
CIC, TPG Capital, and GIC have run due diligence on Delta Dunia simultaneously. However, CIC needs time to make its final decision. Therefore, TPG and GIC acquired Northstar Tambang Persada Limited [NTP] first.
NTP is the owner of 40% shares in Delta Dunia, the holding company of the second largest mining contractor in Indonesia, PT Bukit Makmur Mandiri Utama, which was previously owned by businessperson Johan Lensa.
On Saturday morning last week, the consortium of TPG Capital and GIC announced its acquisition of all non-voting interests in NTP from the Widjaja family.
However, TPG and GIC acquired all non-voting interests from Sinarmas and the Bakrie Group. Northstar Equity Partners previously acquired shares in NTP. Following the acquisition, there will be four parties controlling NTP, namely Northstar Equity, TPG, GIC, and CIC.
TPG also plans to dispose of some of its shares in NTP to CIC. In NTP, there are two kinds of shares or interests, namely series A interest (voting interest) and series B interest (non-voting interest).
Voting interest is controlled by Northstar Equity, while non-voting interest is owned by TPG, GIC, and CIC.
In the consortium, TPG commands the majority shares. TPG, GIC, and CIC will place their representatives in the board of commissioners of Delta Dunia.
CIC has entered a coal company in Indonesia since last year it provided a high-interest loan of US$1.9 billion to PT Bumi Resources Tbk.

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