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Medco buys stake in Newmont's parent company for US$2.6 billion
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A woman walks through the Medco Energi Internasional office in Jakarta. (Kontan/Cheppy A. Muchlis)
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ndonesian oil and gas company Medco Energi Internasional has completed its acquisition of Newmont Nusa Tenggara's (NNT) parent company from the US-based Newmont Mining Corporation and Japan-based Sumitomo Corporation.
The publicly listed company purchased Amman Mineral International, which had a controlling 82.2 percent share in NNT, for US$2.6 billion. AP Investment and three state owned banks Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia backed Medco to fund the purchase.
"The world-class transaction structure applied by the three state owned banks here will hopefully create more strategic transactions in the future," President Director Hilmy Panigoro said in his press statement in Jakarta on Thursday.
NNT's Batu Hijau mine is the second largest copper and gold mine in Indonesia. This will add significantly to Medco's portfolio. However, the finalization of the transaction will have to wait for shareholder and government's approval.
"Newmont and Sumitomo deserve our gratitude because they have become a role model of international investment that is cooperative and supportive in meeting public aspiration," Medco Commissioner Muhammad Luthfi said. (ags)
