Borneo Lumbung and Bakrie to disband 2 JVs

By Ruli Setiawan

IDX-listed PT Borneo Lumbung Energi & Metal Tbk (BORN) recently stated that negotiation is on going with Bakrie Group concerning the disbandment of their Joint Venture companies Borneo Bumi Energi & Metal Pte. Ltd. and Bumi Borneo Resources Pte. Ltd.

Bilateral negotiation has been initiated, one of the deals concerning with share recovery previously invested by BORN as part of Bumi.

"If Bakrie Group's offer to re-acquire Bumi Resources is accepted by Bumi Plc, BORN and Bakrie Group will need to reach a consensus in the disbandment of the aforementioned JV companies, so that ownership in Bumi can be divided accordingly to their respected percentage between us, so that the group can acquire the needed 23.8 percent share it needed to complete the offer stated within its letter to Bumi," the company said in a statement submitted to the IDX.

Part of Bumi, BORN plans to raise its share in Bumi, maintaining its participation and keeping Samin Tan as Bumi Chairman.

As previously reported, the Board of Bumi Plc has received a proposal from PT Bakrie and Brothers Tbk and Long Haul Holdings Limited (Bakrie Group) to cancel their indirect approximately 23.8% shareholding in Bumi, in exchange for an equivalent value of PT Bumi Resources Tbk shares representing 10.3% of the total outstanding share capital of Bumi Resources as presently held through Bumi, in addition to submit a conditional proposal to buy back the remaining 18.9% shareholding in Bumi Resources for cash before Christmas 2012

Editing by Er Audy Zandri