LS MnM’s Investment in PT Teluk Metal Industry, an Indonesian Non-Ferrous Metal Manufacturer

Lee & Ko advised LS MnM on its investment of USD 400 million (approximately KRW 590 billion) in PT Teluk Metal Industry (“PT TMI”), an Indonesian company operating a newly established nickel smelting business, through a combination of new share subscriptions and shareholder loans.

The transaction forms part of LS MnM’s broader expansion into the battery materials business. LS MnM's decision to acquire an interest in PT TMI in Indonesia was aimed at securing a stable production base for nickel sulfate, a key material used in the cathode of secondary batteries. The transaction was subject to a particularly elevated degree of complexity compared to typical deals, given the extensive regulatory issues involved under Indonesian law relating to foreign investment, environmental compliance, plant establishment, and industrial complex construction. Addressing these regulatory issues required a phased investment structure involving common shares, preferred shares, and shareholder loans, together with a series of related commercial agreements negotiated between the parties.