Bumi drawing up new Bakrie deal
Thursday, July 11 2013 - 02:27 AM WIB
The Bakrie Group has been in talks with PT Borneo Lumbung Energi & Metal Tbk to sell its 23.8 percent interest in LSE-listed mining outfit Bumi Plc as part of a transaction to severe ties between Bakrie and Bumi.
If realized, this separation transaction would allow Borneo, which is owned by Bumi Chairman Samin Tan, to double its shares in the London-based company to about 47 percent.
?The separation transaction is subject to ongoing negotiations but the economic terms remain consistent with the original proposal received by the Company from the Bakrie Group in October 2012,? Bumi said in a statement on Wednesday. ?The arrangement that is now being finalized entails the Bakrie Group purchasing the company's interest in Bumi Resources for over US$500 million in cash,? it added.
A condition of a purchase by PT Borneo of the Bakries? stake is that the London-based company?s independent shareholders waive the requirement for Borneo to make a general offer, Bumi Plc said. An independent board committee will assess the offer, it said.
Bumi Plc was established in 2011 by Nathaniel Rothschild and the Bakrie family. But their business relations soon went sour. Rothschild, who has been launching campaign to win control over Bumi, reportedly would not support the new deal.
Editing by Reiner Simanjuntak