Borneo Energi completes purchase of 23.8% of Bumi Plc

PT Borneo Lumbung Energi & Metal Tbk (BORN), a coking coal producer, said it has completed the purchase of 23.8 percent shares in Bumi Plc for US$1 billion, the company said in a filing to the Indonesian Stock Exchange.

?The purchase positions BORN as an equal partner to the Bakrie Group in Bumi Plc,? it said.

Payment of the entire amount was executed on Friday in exchange for the delivery of the transacted shares by the sellers ? PT Bakrie & Brothers Tbk (BNBR) and Long Haul Holdings Ltd.

The transaction has received all necessary regulatory and shareholder approvals, claimed Borneo Energi.

?The acquisition of an effective 23.8 percent interest in Bumi Plc transforms BORN into a leading natural resources company with a diversified portfolio of high-quality thermal coal, coking coal, and mineral assets? it said.

"BORN is excited to embark on this new partnership with the Bakrie Group and other Bumi plc shareholders and is strongly committed to creating shareholder value at all levels," it added.

Standard Chartered Bank acted as the sole financier and lead financial advisor to BORN in connection with this acquisition. Citicorp acted as the supporting financial advisor.

Borneo and the sellers signed a sales and purchase agreement (SPA) on October 31, 2011 for the shares sale. With the completion of the transaction, Borneo Energi and Bakrie Group own 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 purchase of the Bumi Plc shares by Borneo Energi is part of the strategic alliance formed by the company and Bakrie Group.

Editing by Roffie Kurniawan