Jones Day Advises On US$1.7 Billion Acquisition

Friday, July 1, 2011 - 00:00

Jones Day advised Maju Investments (Mauritius) Pte Ltd, a subsidiary of Temasek Holdings (Private) Limited ("Temasek"), which led a consortium of international investors in the acquisition of a majority stake in the U.S.-based oilfield service company Frac Tech Holdings, LLC. The consortium received US$1.7 billion in acquisition financing from Bank of America Merrill Lynch and Citigroup.

Temasek, an Asian investment company headquartered in Singapore, has a diversified S$186 billion (US$133 billion) portfolio, with investments across the world, including energy investments in Asia, the United States, and South America. Frac Tech Holdings, based in Fort Worth, Texas, is the fourth-largest provider of oil and natural gas well stimulation services in the United States with expertise in high-pressure hydraulic fracturing, and services the E&P industry in numerous shale plays across the United States.

Chesapeake Operating, Inc., which recapitalized its original investment in Frac Tech Holdings through the transaction, now holds a 30 percent interest in Frac Tech International.