Bumi Resources wants to have full ownership in Arutmin

Publicly listed PT Bumi Resources wants to have a 100 percent ownership in East Kalimantan-based coal producer PT Arutmin Indonesia by acquiring the remaining 20 percent shares in the latter, Bisnis Indonesia reported Monday.

Sources told the daily that the plan was unveiled by Bumi Resources’ management during a recent meeting with security analysts. At present Bumi owns 80 percent of the coal mining company’s share.

Bumi’s president director Eddi J. Soebari confirmed the plan late last week, saying that he hoped the deal could be completed this year. He added that the takeover of the coal company’s shares would be partly financed through syndicated loans.

He said that Bumi plans to raise loan worth US$230 million from a syndication of banks including Suisse First Boston and UFJ Bank. About US$161 million of the loans would be used to repay the company’s maturing loans, the other US$30 million to pay contractors’ claims and the remainders to finance the acquisition of the other 20 percent of Arutmin, the country’s largest coal producer.

Bumi took over the 80 percent share of Arutmin from BHP Billiton in Oct 23, 2001. The other 20 percent are now under the control of Bakrie and Brothers’ creditor PT Ekakarsa Yasakarya Indonesia.

Late last year Bumi took over the entire stake of another East Kalimantan-based coal producer PT Kaltim Prima Coal from BP and Rio Tinto. (*)