EMR Capital and Farallon Capital have overcome unprecedented
multi-jurisdictional regulatory issues in their $775 million
leveraged buyout of one of the world's largest goldmines.
Australian private equity giant EMR and its US-based
counterpart Farallon led an international consortium to secure
a 95% stake in Indonesia’s Martabe mine from Hong
Kong-listed G-Resources on March 17.
Counsel involved in the deal point to a host of regulatory
hurdles, from mining and export license laws in Indonesia to
listing rules in Hong Kong that threatened to derail the
"Negotiating the transaction was challenging due to the
complexity of the financing, various parties' requirements,
regulatory constraints, and the overall market at that time,"
said John Brewster, partner at Clayton Utz in Melbourne.
Brewster attributes part of the deal’s complexity
to the vendor’s status as a Hong Kong-listed
company, whose disposal of its mining assets were categorised
by the HKEx stock exchange as...