New Hope to sell stakes in Adaro, IBT

Australian mining company New Hope Corporation said on Tuesday it has signed Conditional Share and Purchase Agreement for the sale of its Indonesian assets; South Kalimantan coal mine PT. Adaro Indonesia and South Kalimantan coal terminal operator PT. Indonesia Bulk Terminal (IBT) to a consortium consisting of a group of Indonesian prominent businessmen.

New Hope said the sale of its 40.83 percent interest in Adaro and 50 percent interst in IBT would generate US$378 million upon the completion of the transaction.

The transaction is still subject to fulfillment of several conditions.

Adaro is Indonesia?s largest single mine, with annual production acapacity of above 25 MTPA, while IBT has throughput capacity of 8 MTPA.

New Hope said the purchaser of the assets is a consortium consisting of TP Rachmat, Edwin Soeryadajaya, Benny Subianto and Garibaldi Boy Thohir, financed by a combination of equity financing from Temasek Holding and Noonday Management as the investment manager of the Farallon Funds and a debt financing form a syndication of commercial lenders under coordination of Temasek and Noonday.

Edwin Soerjadjaya is currently president director of Adaro and also controlling shareholder of PT. Dianlia Setyamukti, which currently holds 51 percent shares of Adaro. Edwin is the son of William Soerjadjaya, the founder of Indonesian top conglomerate PT. Astra Internasional. TP Rachmat and Benny Subianto are William?s former executives in Astra, whose substantial amount of shares is now controlled by Farallon. (alex).