Bumi Plc gets approval to carry out tender offer of Berau shares

Bumi Plc has received an approval from the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) to carry out tender offer over 9.74 percent of PT Berau Coal Energy?s shares, Investor Daily reported Wednesday.

In the tender offer, Bumi Plc formerly known as Vallar Investments UK Limited, would buy the 3.40 billion shares at a price of Rp 540 per share or a total of Rp 1.83 trillion. The purchase will enable Bumi Plc to increase its ownership at Berau to 84.74 percent from 75 percent at present.

?Bumi has received approval to carry out tender offer over Berau shares at a price of Rp 540 per

Share,? Annis Baridwan, the head for real sector division at Bapepam said.

Co-founder of Bumi Plc, Daren Morris said earlier that the company would increase the free float shares of Berau to 20 percent after the tender offer from 5 percent at present to comply with the capital market regulations.

Bumi Plc has recently completed the acquisition of 75 percent of Berau coal at Rp 540 per share or a total of Rp 14.13 trillion. The company agreed to pay 35 percent of the shares to PT Bukit Mutiara, a unit of Recapital, in cash and to swap the remaining 40 percent with 24.9 percent of its shares.

However, in a statement sent to the London Stock Exchange, Vallar and Bukit Mutiara had agreed to amend their share purchase agreement on Feb. 23, 2011. Under the revised agreement, 13.3 percent of the shares would be retained by Bukit Mutiara, and 11.6 percent will be acquired by Long Haul, a unit of Bakrie Group. With the purchase, Bakrie will be able to increase its ownership in Vallar to 54.6 percent from 43 percent at present. (*)