Bumi Resources and Energi Mega will be merged

PT Bumi Resources and PT Energi Mega Persada, both controlled by the family of coordinating minister for social welfare Aburizal Bakrie, will go ahead with their merger plan which will create a new company with total market capitalization of about Rp 30 trillion, Kompas daily reported Thursday.

Vicky Ganda Saputra, a manager for corporate finance at PT Danatama Makmur which has been named as the lead manager for the merger plan, said that shareholders of both companies would hold an extra-ordinary shareholders meeting on July 28 to approve the merger plan.

He said that PT Bumi Resources would become the surviving company in the merger plan which would be carried out through a share acquisition through one to one share swap. As of May 31 Bumi, which is engaged in coal mining, has 19.404 shares with total value of Rp 9.702 trillion, while Energi Persada which is involved in oil and gas exploration has 14.4 billion shares with total value of Rp 1.4 trillion.

"With market capitalization of about Rp 30 trillion, the new company which would operate under the name of PT Bumi Resources would become one of the ten largest companies listed on the Jakarta Stock Exchange in term of market capitalization," he said. (*)