Bakrie in talks to sell stakes in Bumi, Energi and others
Monday, October 13 2008 - 01:17 AM WIB
The conglomerate, which is controlled by the Bakrie family, has also denied speculation that it has defaulted on its debt payments.
The investors that are interested in buying its stakes include the U.S.-based hedge fund Avenue Capital Group, Credit Lyonnaise, India's Tata Group, Indonesia's Sampoerna Group and Djarum Group, company director Ari Hudaya said in a press conference on Sunday.
Ari also said along with the stake-sale program, Bakrie would launch a share buy-back program to regain control in the units.
Trading in the shares of the five subsidiaries has been suspended since last week following sell-offs in their shares amid speculation that the company failed to pay maturing debts.
"We will sell our stakes...but we will not lose our control (on our subsidiaries)," Hudaya said at a press conference.
Bakrie & Brothers has a 35 percent stake in the country?s largest coal miner PT Bumi Resources, 40 percent in property developer PT Bakrieland Development, 40 percent in oil and gas company PT Energi Mega Persada, 54 percent in PT Bakrie Sumatera Plantations and 55 percent in PT Bakrie Telecommunications. It also fully owns unlisted PT Bakrie Infrastructure.
Ari said that Bakrie & Brothers has $1.2 billion in debts owed to Odickson Finance, JP Morgan Chase & Co, ICCI Bank Ltd, with $200 million falling due by the end of the year and the remaining $1 billion in April 2009.
According to Ari, Avenue Capital, which has a 25 percent stake in Barkrieland, is interested to increase its stake in the property firm, and buy stakes in Bumi, Bakrie Telecom and Energi Mega. Credit Lyonnaise is interested in Bakrie Sumatra.
Ari said several local companies, including the Sampoerna and Djarum groups, have had talks with Bakrie to buy stakes in the firm, but Bakrie has yet to start negotiations with the firms. (*)