Darma Henwa likely to win beauty contest in acquiring three percent stake in NNT

The West Sumbawa Regency’s Regional House of Representatives (DPRD) has proposed JSX-listed mining contractor PT Darma Henwa Tbk a strong candidate for the regency’s partner in acquiring a three percent stake in copper and gold company PT Newmont Nusa Tenggara (NNT) worth US$109 million, Investor Daily reported Wednesday.

 

The recommendation was made following a hearing between the DPRD and Capriole Consulting, an appointed legal and business consultant of the West Sumbawa Regency, in Taliwang, West Sumbawa on Tuesday.

 

Darma Henwa ranked first in the beauty contest for becoming a partner of West Sumbawa Regency, followed by JSX-listed mining firm Bumi Resources Tbk. Other contestants include Newmont Indonesia Ltd Nusa Tenggara Mining Corporation, PT Danatama Makmur, PT Recapital, and Credit Suisse.

 

West Sumawa Regent Zulkifli Muhadli confirmed the recommendation, saying, however, that the West Sumabawa administration would not make a decision on whether or not it would accept Darma Henwa as its partner until it knew the company’s readiness. “If we both reach an agreement, we will soon sign a business deal,” he said.

 

However, if, for one reason or another, Darma Henwa is unable to fulfill what the West Sumbawa administration needs, then Bumi Resources has an opportunity (to becoming its partner),” he said.

 

Meanwhile, Asoka Bratanata, a member of the Acquisition Advisory Team, said that the ranking issued by Capriole has shown that all of the six competing companies are able to provide funds for the acquisition but Darma Henwa is the most eligible one because it offers funding scheme with the softest requirement in terms of interest rate and term of repayment. (*)