Ancora buys 5% of Bumi

Ancora Management Capital (Asia) is said to have acquired an approximately 5 percent stake in giant coal miner PT Bumi Resources from U.S. investment bank JP Morgan.

Investor Daily, quoting a source who claimed to be well informed about the transaction, reported on Monday that Ancora bought the stake for US$75 million. The stake was given by JP Morgan as a collateral for a loan amounting to between $70 million and $100 million.

According to the newspaper, Ancora was established early this year to invest in Indonesian natural resources and infrastructure. The firm was founded by Gita Wirjawan, the former president of JP Morgan?s Indonesian operation.

Aside from Ancora, an investment fund from the Middle East, Trimex, voiced interest to buy Bumi?s stake last week, according to the newspaper.

Trimex through its joint ventures RAK Minerals and Metal Investments is said to be interested to invest a total of $1.5 billion in Indonesia.

Last week, Bakrie & Brothers announced it had clinched a deal with Northstar Pacific Partners Limited allowing the latter to repay the former?s loans amounting to $575 million. In return, Northstar will become a strategic partner for Bakrie and the funds provided by Northstar are convertible to stake in the future. (*)