Chinese Metals Giant to Take Stake in Harum Energy’s Nickel Unit

Eternal Tsingshan Group Ltd. plans to take large stake in Harum Energy’s nickel unit as part of debt-for-equity swap, increasing its grip on Indonesia’s metals sector.

The company affiliated with the world’s largest stainless steelmaker — Tsingshan Holding Group Co. — will take as much as 49% of coal miner’s nickel arm by buying its convertible notes, Harum Energy said in a stock exchange filing late on Wednesday. Under the deal signed April 5, the securities will be issued in the third quarter of the year.

The Chinese conglomerate, owned by billionaire Xiang Guangda, is already by far ...