TPG and GIC to invest in Indonesia’s coal firm

SINGAPORE, Dec 18 (BestGrowthStock) – U.S. private equity firm TPG
and Singapore’s sovereign wealth fund GIC will
co-invest in a $400 million stake in Indonesia’s coal mining
services firm Delta Dunia Makmur , the Financial
Times reported on Saturday.

The purchase, one of the largest private equity deals ever
done in Indonesia, could be finalised as early as this
weekend, the daily quoted people familiar with the matter as
saying.

TPG is forming a consortium with Government of Singapore
Investment Corporation (GIC) to take a “significant
minority stake” in association with Northstar Equity Partners,
an Indonesian investment group in which TPG has a stake.

Northstar already has a 40 per cent stake in Delta Dunia,
which has a market capitalisation of around $1 billion on the
Jakarta bourse, the daily reported.

GIC was not immediately available for comment.

China Investment Corp (Read more about U.S. companies investment into China) , the Chinese sovereign
wealth fund that has long had an interest in acquiring natural
resources and securing energy supplies, is expected to join
the investment group in coming days, the newspaper said.

Delta Dunia provides various services to Indonesia’s coal
mine operators such as Bumi Resources, Indonesia’s largest
mining group, controlled by the politically connected Bakrie
family. It transports coal to customers in China, India and
other markets.

The biggest part of the stake that the investment group is
buying comes from entities controlled by the Widjaya family,
which owns Asian Pulp and Paper, the daily reported.

Delta Dunia shares closed up 2.36 percent on Friday.
(Reporting by Nopporn Wong-Anan; Editing by Ron Popeski)

TPG and GIC to invest in Indonesia’s coal firm