Singapore’s GIC takes part in Adaro, IBT deal: Report

Singapore’s Government Investment Corp (GIC), that manages the country’s foreign exchange reserves, is part of a consortium that has clinched a deal to takeover Indonesia's biggest coal mine, The Business Times reported Friday.

The consortium, which includes Goldman Sachs (GS), Citicorp (C) and US-based Noonday Asset Management, will provide finance and equity backing to a group of Indonesian businessmen led by Edwin Soeryadjaya, the report said, citing an identified source.

The newspaper said GIC will buy a direct stake of about US$50 million in South Kalimantan’s coal producer PT Adaro Indonesia and coal terminal PT Indonesia Bulk Terminal (IBT) through Alam Tri Abadi, a company setup by Soeryadjaya and his partners.

Australian New Hope Corporation Ltd announced Thursday it had completed the sale of the assets, comprising a 40.83 percent interest in Adaro and a 50 percent interest in coal IBT, for US$406.

Another state-linked Singapore investment company Temasek Holdings denied on Thursday that it had participated in that deal. “There were rumors previously that we were participating. It has always been just speculation and now that the deal is completed, we (can say we) did not participate,” Temasek spokesperson Rachel Lin was quoted by AFX News as saying. (*)