Northstar buys into Indonesian mining contractor

Northstar Pacific Partners, an Indonesia-focused private equity firm affiliated with TPG, has acquired a 40 percent stake in Indonesian company Delta Dunia Makmur in a deal media reports have estimated to be worth between $350 million and $400 million.

Northstar did not respond to a request for comment by press time.

Northstar bought 2.72 billion shares in the company, which did not dislcose the purchase price. Delta Duniya said in a statement it has also sold 2.6 billion shares or a 38.29 percent of its own share capital for about $386 million through an equity placement.

Mining: Private equity digs in

In August, Delta Dunia agreed to acquire one of Indonesia's largest coal mining contractors, Bukit Makmur Mandiri Utama (BUMA), for $550 million. The deal was financed in part by $240 million in loans from Northstar, according to Indonesian newspaper VivaNews.

Delta Dunia was initially a manufacturing company primarily engaged in the production of sweaters. The company’s other activities include trading, mining, land transportation and services. It has since changed its primary activity from garment manufacturing to property development. 

Northstar Pacific was founded in 2003 as a Jakarta-based merchant bank engaged in principal investments and oporate finance advisory services. The firm partnered with TPG in 2006 to raise a private equity fund focused primarily on investments in Indonesia and selectively in other ASEAN markets. The firm has made investments in the oil and gas, mining, retail and consumer goods, telecommunications and banking sectors.