Bumi Resources to set up a new holding for Arutmin, plans IPO

IDX-listed coal giant PT Bumi Resources Tbk plans to set up a new holding company, which would hold the shares of several subsidiaries including PT Arutmin Indonesia, one of the major contributors to Bumi?s coal output, Investor Daily reported on Wednesday.

The paper quoted Bumi Corporate Secretary Dileep Srivastava as saying that the company will then launch IPO for the planned new holding company.

?We?re considering to set up a new entity which would house Arutmin and several other subsidiaries including Pendopo Energi. This is aimed at increasing company value,? he said.

Arutmin, which operates several coal miners in South Kalimantan, produces about 30 million tons of coal per year, compared to 70 million tons per year by PT Kaltim Prima Coal (KPC), another major subsidiary of Bumi Resources. Bumi recently agreed to sell 19 percent shares in KPC to China Investment Corporation to help repay debts via a debt to equity swap mechanism. (*)