Allen & Overy LLP : & Overy advises senior lenders on one of the largest acquisitions in Indonesia in recent times

​Allen & Overy and Ginting & Reksodiputro (in association with Allen & Overy) have advised Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia as senior lenders on the acquisition of PT Newmont Nusa Tenggara (NNT) by a consortium comprised of PT Medco Energi Internasional Tbk and banker Agus Projosasmito's PT AP Investment.

NNT was acquired from shareholders Newmont Mining Corporation, Sumitomo Corporation, PT Multi Daerah Bersaing and PT Indonesia Masbaga Investama, who collectively held 82.2% of the issued share capital of NNT. NNT owns and operates the Batu Hijau gold and copper mine located on the island of Sumbawa, approximately 1,529 km east of Jakarta, Indonesia.

This transaction is of great political significance in Indonesia, resulting from the changes to domestic export license regulations and foreign ownership issues in Indonesia. Allen & Overy has been advising on the deal since the middle of 2015, and was able to field a fully integrated team advising on all legal aspects of the transaction (including English, Singapore, Indonesian and New York law).

Commenting, Singapore based partner Gautam Narasimhan said: 'The acquisition of PT Newmont Nusa Tenggara is a truly significant transaction for the mining sector, Indonesia and the Asia Pacific region. We extend our congratulations to Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and the entire Sponsor group, and thank them for their hard work and dedication over the past year. This follows our recent work on the acquisition of the Martabe mine in Indonesia and is another great example of our offering to clients, and our expertise in structuring and executing complex leveraged transactions.'

Jakarta based partner Daniel Ginting added: 'Our ability to provide holistic advice efficiently to the senior lenders, including advice on the Indonesian regulatory framework and the structuring of such a complex transaction, has been key in assisting the senior lenders to reach this milestone with the Sponsor group'

The Allen & Overy team was led by Singapore partner Gautam Narasimhan and Jakarta partner Daniel Ginting. They were supported by counsel Desi Dwitiasrini, senior associates Scott Lovell and Chris Bishop, associates Ivan Tambunan, Matthew Del Rosso, Rivan Supriadi and Raditya Putra, and trainee Nitra Anggi Nuremira. New York law advice was provided by partner Joseph Stefano and associates Stefanie Duda Karidis and Justin Cohen. Advice on hedging aspects was provided by Singapore partner Matthew Hebburn and associate Ethan Tan.