Bumi seeks to raise more than Rp 8t from rights issue

IDX-listed coal giant PT Bumi Resources Tbk said it will expand the size of its planned rights issue, hoping to raise Rp 8.05 trillion in proceeds, up compared to the initial target of Rp 6.54 trillion, reports said on Friday.

According to company prospectus published on Thursday, Bumi will issue 32.2 billion in new shares, compared to 26.17 billion of new shares stated in its initial May 2014 prospectus. The target price remains unchanged at Rp 250 per share.

Kontan said that new shares unabsorbed by public investors will be distributed to a number of parties including up to 6.9 billion shares worth US$150 million to Long Haul Holdings, a unit of the Bakrie Group, the founder of Bumi. Proceeds from Long Haul will be used to help repay Bumi?s debt to Country Forest Limite (CFL), a subsidiary of China Investment Corporation (CIC). Bumi owes a total of $1.3 billion to CIC.

Bumi said it will also allocate 6.9 billion new shares to repay $150 million debt to Castleford Investment Holdings Ltd to realize a debt to equity conversion scheme agreed on June 10, 2014. Castleford will end up owning 18.84 percent shares of Bumi.

Bumi has also appointed securities firm PT Danatama Makmur as standby buyer of the planned rights issue, ready to absorb up to 2.04 billion units of the new shares, which could end up Danatama owning 5.58 percent shares of Bumi. (*)