Borneo to pay $3.1 billion for Bumi acquisition by end of June
Monday, June 26 2006 - 03:07 AM WIB
The payment should be made by end of this month, Borneo Lumbung Energi president director Samin Tan said.
Samin said the payment will close the transaction of purchase of shares of Kaltim Prima Coal, Arutmin Indonesia and Indocoal with an amount of $3.1 billion.
?Through its special company vehicle, Borneo is finalizing the process of obtaining a $2.1 billion loan from 20-40 foreign banks. The loan is being arranged by lead arranger Credit Suisse and a $700 million exchangeable bond, which is being helped by the UOB Singapore. All the lawyers are working to finalize the entire transaction. We are targeting to complete the payment for this acquisition at the latest June 30, 2006. Hopefully. We will not miss the deadline,? Samin told the Bisnis on Sunday.
According to Samin, Borneo has put all its assets and shares acquired from the PT Bumi Resources as collateral for the loan.
Based on the prospectus issued by the PT Bumi Resources on April, 17, 2006, Bumi will sell it 95% stake in Kaltim prima Coal, 99.99% in Arutmin and 99.99% in PT Indocoal Kalsel Resources, 99.99% in PT Indocoal Kaltim Resources and 100% in Indocoal Resources (Cayman) Limited.
Borneo is owned by PT Republik Energi (99.99%) and PT Muara Kencana Abadi.
?After the transaction is over, I will be replaced by a professional. I am not yet in a position to reveal the name because he is working in a different place,? Samin said. (*)