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Large equity issue boosts Indonesian mining
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Large equity issue boosts Indonesian mining


The largest rights issue by an Indonesian mining company has been completed with advice from DLA Piper.

Firm: DLA Piper (ANTAM)

Deal: ANTAM has made a rights issue.

Value: US$393 million

Area: Banking and finance

Key players: The team was led by Singapore partner Joe Bauerschmidt (pictured), supported by Oscar Franklin Tan, senior associate, and Jeffrey Sheehy, solicitor, advising on US securities law. Melbourne partner Mark Burger, senior associate Dylan Burke and associate Anna Hedgcock advised on Australian law and Stock Exchange listing issues.

Deal significance: Perseroan (Persero) PT Aneka Tambang Tbk (ANTAM), an Indonesian metals and mining company, has made a Rp5.9 trillion (US$393 million) rights issue.

The transaction, the largest equity issue by an Indonesian mining company since 2010, was oversubscribed, and the new shares were allotted on 2 November.

According to a release from DLA Piper, ANTAM is transforming its business from mining to processed metals manufacturer. The capital raised by the rights issue will fund Phase 1 of ANTAM's East Halmahera ferronickel processing plant, which is expected to be completed in 2018.

In addition to the rights issue, the DLA Piper team also obtained an exemption from the ASX in relation to the rights issue. ANTAM is dual listed on the IDX and ASX.

“ANTAM did a tremendous job in completing the rights offering within a very tight timeframe,” said Mr Bauerschmidt.

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