Bakrie forms strategic partnership with Borneo Energi
Tuesday, November 1 2011 - 11:34 AM WIB
Under the terms of the SPA and upon completion of the transaction, Bakrie Group and Borneo Energi will own indirectly 47.6 percent shareholding in London listed Bumi Plc, which in return owns direct and indirect investments in PT Bumi Resources Tbk, PT Berau Coal Energy Tbk and PT Bumi Resources Minerals Tbk.
The transaction is valued at US$1 billion which values Bumi Plc?s shares at approximately GBP 10.91 per share at the date of announcement. This represents a premium of approximately 46 percent to the closing price of Bumi Plc?s shares on the LSE on 28 October 2011 and approximately 45 percent premium to the last 20-day volume-weighted average trading price of Bumi plc?s shares.
The price also represents approximately 5% premium to the last 6 month volume-weighted average trading price of approximately GBP 10.34
The consideration will be payable in cash and Bakrie Group will use the proceeds from the transaction to pay down a financing facility initially coordinated by CS Loan, therefore reducing BNBR?s overall debt position considerably.
Bakrie Group expects to complete the transaction on or around the end of December 2011 following BORN shareholders approving the transaction and satisfaction of regulatory and other approvals.
Bakrie said the deleveraging aspect of this transaction is important as it provides Bakrie & Brothers with a healthier and stronger balance sheet.
?We have again demonstrated our commitment to meet our creditors? obligations and highly appreciate their support towards Bakrie & Brothers especially during these volatile market conditions,? said Bobby Gafur Umar, President Director and CEO of Bakrie & Brothers.
Bakrie & Brothers will make appropriate disclosures upon completion of all relevant documentation and approvals.
Credit Suisse assisted Bakrie & Brothers in a financial advisory capacity. (romel)