Bumi Resources to transfer shares in KPC, BRMS to CIC
Saturday, January 11 2014 - 02:36 AM WIB
IDX-listed coal mining giant PT Bumi Resources Tbk obtained on Friday shareholders approvals to transfer part of its shares in coal miner PT Kaltim Prima Coal (KPC) and in IDX-listed mining firm PT Bumi Resources Minerals Tbk (BRMS) to China Investment Corporation (CIC) as part of mechanism to repay debts to the latter.
Bumi is in the process of repaying US$1.357 billion worth of debts to CIC via a debt to equity conversion and rights issue. Bumi will transfer 19 percent stake in KPC and 42 percent stake in BRMS, which respectively worth $950 million and $257 million, to the Chinese lender.
?About 97 percent of the shareholders attending the shareholders meeting approved the transfer proposal,? said Vice President of Investor Relations of Bumi, Achmad Reza Widjaja.
The remaining $150 million debt will be repaid via a planned rights issue. The company will hold another shareholders meeting to seek approval for the proposal.
Meanwhile, Bumi Finance Director Andrew Beckham said that the transfer of the shares in KPC and BRMS to CICI was expected to be completed before the end of this month.
Editing by Reiner Simanjuntak