BRMS obtains approval for non-preemptive rights issue

By Nova Farida

IDX-listed mining company PT Bumi Resources Minerals Tbk (BRMS) obtained on Wednesday approval from shareholders for a proposed non-preemptive rights issue.

Investor Relations at BRMS, Erwin Hidayat said on Tuesday that the non-preemptive rights issue, which will be made in the third or fourth quarter of this year, will net proceeds of about US$231 million (Rp 3 trillion) to be used to repay loans including to Wexler Capital Pte Ltd ($154.96 million), First Financial Company ($90 million), and vendors ($41.16 million).

Erwin said that once the rights issue has been completed, which forms part of a restructuring deal agreed previously with creditors, BRMS will have a much cleaner balance sheet.

He said that the company will only have to resolve $90 million debt owed to Credit Suisse.

To repay the debt, BRMS plans to sell 51 percent stake in subsidiary PT Dairi Prima Mineral, which owns tin and zinc concessions in North Sumatra, to China Nonferrous Metal Industry?s Foreign Engineering & Construction Co Ltd, with transaction value estimated at $198.9 million.

Editing by Reiner Simanjuntak