Article from Australian Financial Review: EMR Capital rules off Martabe refinancing, offers swirl

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Article from Australian Financial Review EMR Capital rules off Martabe refinancing offers swirl

By: by Sarah Thompson, Anthony Macdonald, Joyce Moullakis:
http://www.afr.com/street-talk/emr-capital-rules-off-martabe-refinancing-offers-swirl-20171002-gyt4a1

Owen Hegarty-backed EMR Capital has led a key $US560 million ($716 million) refinancing of the Martabe gold and silver mine in Indonesia.

Street Talk understands the specialist mining private equity manager engaged with a mix of global and local banks and has just completed the mine’s debt refinancing.

EMR’s focus is now said to be increasing production and extending the mine’s life.

The Martabe mine is located in the North Sumatra province of Indonesia and was snapped up by EMR and several partners for $1.1 billion about two years ago.

Interestingly, EMR received a number of unsolicited offers for Martabe in recent months. The firm has brought in Deutsche Bank and Morgan Stanley to manage any information flow to credible and well-known parties that are interested in the mine.

The banks are, however, not running a formal sale process and sources said there was no timetable for the receipt of bids.

It is unclear if Deutsche and Morgan Stanley participated in the Martabe refinancing.

Hegarty, a resources industry stalwart who founded Oxiana and held several executive roles at Rio Tinto, established EMR with former KPMG partner Jason Chang in 2011.

The firm has had a busy few years and in August entered into a binding agreement to acquire an 80 per cent interest in the Lubambe copper mine in Zambia.

EMR’s second private equity fund raised US$860 million. Late last year, the firm announced the acquisition of the Golden Grove copper, zinc, lead and precious metals mine from Chinese giant MMG.

Elsewhere, as revealed by this column, ASX-aspirant Wagners is hosting a two-day site visit for fund managers.

The tour will largely span the building materials and mining service firm’s operations in Toowoomba.

Credit Suisse and Morgans are managing the 2017 float which may give the group a market capitalisation of $500 million.