Jurisdiction - Indonesia
Indonesia – Herbert Smith advises Deutsche Bank and Macquarie as Placing Agents on USD286m sale of stake in Indonesian Coal Producer.

8 June, 2011


Herbert Smith and its associated Indonesian law firm Hiswara Bunjamin & Tandjung (HBT), have advised Deutsche Bank AG, Hong Kong Branch and Macquarie Capital (Singapore) Pte. Limited as placing agents on the US and Indonesian law aspects of the US$289 million sale of a stake of approximately 10% in PT Harum Energy Tbk., a listed Indonesian coal producer, by controlling shareholder PT Karunia Bara Perkasa.


The transaction launched and priced overnight on 28 May and was executed on the Indonesia Stock Exchange to institutional investors.


Harum Energy was established in 1995 and has a portfolio of businesses engaged in coal mining and logistics activities in Indonesia. The company's initial public offering and listing on the Indonesian Stock Exchange, a transaction on which HBT also advised, took place in October 2010.


The Herbert Smith corporate team was led by Hong Kong partner Kevin Roy and Singapore counsel Siddhartha Sivaramakrishnan, assisted by Singapore associate Felipe Duque. The HBT/Herbert Smith team in Jakarta consisted of partner David Dawborn and HBT senior associate Adrian Cornellius.


Commenting on the deal, Siddhartha Sivaramakrishnan said:


“We are delighted to have acted for Deutsche Bank and Macquarie Capital on this transaction and to have had the opportunity to showcase the strength of Herbert Smith’s capital markets practice in South East Asia and, through our successful 10 year association, the high-quality offering of the firm’s Indonesian practice together with HBT as among the leading corporate legal teams for Indonesian transactions for international clients."


David Dawborn added:


“This deal provides the latest evidence of HBT’s and Herbert Smith’s joint capabilities and substantial track record advising on corporate transactions in Indonesia, often under tight time frames and facing complex legal issues. Unlike most of our competitors, we have on-the-ground legal capabilities in Indonesia, allowing us to execute quickly and at the highest level on cross-border transactions with an Indonesian component.”

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