Deutsche Bank may face legal suit over Adaro, IBT shares sale
Thursday, March 10 2005 - 03:18 AM WIB
Media Indonesia daily quoted OC Kaligis, lawyer who represented Singapore-based company Beckkett Pte. Ltd accused Deutsche Bank to sell shares in Adaro and IBT without holding a tender and causing financial loss to Beckkett as the sale proceeds was far below market price.
?The sale has been declared by Jakarta High Court as void,? said Kaligis.
Beckkett, a company rumored to be controlled by pulp and paper tycoon Sukanto Tanoto had 74.2 percent shares in PT Swabara Mining and Energy, which in turns had 99.98 shares in PT Asminco Bara Utama, the 40 percent shareholder of Adaro Indonesia and IBT.
According to document obtained by Petromindo.Com the problem began during Indonesian economic crises in 1997 when Deutcshe Bank gave US$100 million bridge loan facility to Asminco through its Singapore branch with Beckkett?s shares in Swabara, Swabara?s shares in Asminco and Asminco?s shares in Adaro and IBT as collateral through share pledge agreement.
Asminco apparently had trouble in paying the loan back and on January 18, 2002 deutsche Bank sold the shares of Asminco in Adaro and IBT to PT Dianlia Setyamukti, shares of Beckkett in Swabara to PT Mulhendi Sentosa Abadi and shares of Swabara to PT. Akabiluru.
On February 19, 2002, based on petition filed by Deutsche Bank, South Jakarta Distric Court declared the sale of the shares were legitimate.
But three years later on February 2005, Jakarta High Court, based on Beckkett?s petition annulled South Jakarta Court decision and give ownership back to former owners.
Kaligis said that the sale of 40 percent shares of Asminco in Adaro Indonesia and IBT only valued at US$ 45 million, far below 40,83 percent shares of New Hope Corporation shares in Adaro and 50 percent in IBT which was valued at $378 million. New Hope is an ASX-listed company, which has controlling shares in Adaro and IBT.
Beckett?s lawyers and Deutsche Bank lawyers had been involved in new paper announcements battle over the week. Beckkett?s lawyer warned public not to be involved in any legal transaction in relation to IBT. Adaro, Asminco and Swabara but in another announcement Deutsche Bank lawyers insisted that Deutsche Bank had sold the shares legally.
Dianlia, which is controlled by Suryadjaya family through Edwin Soerjadjaya, son of the former owner of respected Indonesian conglomerate PT. Astra Internasional, currently holds 51 percent shares of Adaro. Edwin Soerjadjaya with a group of other Indonesian businessman and is in negotiation with New Hope to acquire New Hope?s entire interest in Adaro and IBT for US$378. The deal will be financed by Singapore state conglomerate Temasek Holding and another Singaporean firm Farallon Corporation.
Temasek is rumored to be very keen to get controlling shares of Adaro, Indonesia?s largest single coal mining. (godang)