Bakrie & Brothers to acquire affiliates

Publicly listed firm PT Bakrie & Brothers Tbk (B&B) plans to raise fund of Rp 51.3 trillion (1US$= Rp 9,450) to buy stakes in three affiliates, putting the Bakrie family's mining, energy, and property interests in one holding company.

It plans to acquire a 35 percent stake in mining house PT Bumi Resources Tbk, a 40 percent stake in oil and gas firm PT Energi Mega Persada Tbk (EMP) and 40 percent of developer PT Bakrieland Development Tbk.

"B&B will acquire controlling stakes in Bumi, EMP and Bakrieland Development," President Director Bobby Gafur Umar said on Friday, adding that the company will pay Rp 48.4 trillion for the acquisitions.

Company officials said that of the money raised, Rp 40.1 trillion would come from issuing new shares. B&B will also sell Rp 2.9 trillion of warrants and borrow Rp 8.3 trillion from banks.

The company will seek shareholder approval on Feb. 21 and the rights issue will be conducted on March 17.

On Wednesday, its mobile phone operator PT Bakrie Telecom Tbk said it planned to raise over Rp 3 trillion by issuing new shares.

B&B is controlled by the family of Aburizal Bakrie, Indonesia's Coordinating Minister for Public Welfare. (*)