Four firms guide $3bn three-way Indo-UK coal deal

Hadiputrano, Hadinoto & Partners, Soemadipradja & Taher, Holman Fenwick Willan and Freshfields Bruckhaus Deringer have taken leading roles on a three-way merger to create one of the biggest global players in the coal industry. The cash and share swap deal was put together in a little over three weeks, and is expected to close in April 2011. And it was by no means a simple deal: publicly listed British investment firm Vallar will put up US$3bn in cash and shares to acquire a 75% stake in Berau Coal Energy and a 25% stake in Bumi Resources, Indonesia’s fifth largest and largest coal producers, respectively. The share exchange will result in the Bakrie group (the majority shareholder of Bumi Resources) gaining a controlling stake (43%) in the new Vallar. Recapital will acquire a 25% stake in Vallar. A reverse takeover will then be executed with Vallar being renamed ‘Bumi’ in the process, providing a backdoor entry to listing on the London Stock Exchange. The Bakrie group will also gain control of Berau Coal Energy through Vallar’s acquisition stake.

Four firms guide $3bn three-way Indo-UK coal deal Thu, Dec 16, 2010