Bumi to get US$ 390m from sales of BRM
Wednesday, March 21 2012 - 02:36 AM WIB
BUMI controls 87 percent of shares at the Indonesia listed PT Bumi Resources Minerals.
From the total US$ 750 million worth of BUMI's debt to repay, up to US$ 150 million is commercial loan while the remaining US$ 600 million was credit from China Investment Corporation (CIC).
The company has on October 2011 stated to accelerate the credit payment of its loan to CIC, repaying all commercial loan until the end of the first quarter of this year, which if realized, BUMI will be left with less than US$ 3 billion worth of loan at the end of this year.
BUMI also plans to use its discretionary fund of US$230 million at PT Recapital Asset Management this August 2012, in addition to use the repaid US$ 130 million fund of the total US$ 260 million existing loan at PT Bukit Mutiara, the main company of PT Berau Coal Energy Tbk, to help finance the loan payment, which has been a key point during BUMI's recent non-deal roadshow to England and a number of European countries in the previous weeks.
BUMI expects to raise its production output to 114 million tons in 2014, 100 million tons from subsidiary companies PT Kaltim Prima Coal and PT Arutmin Indonesia, while the remaining 14 million is expected to come from other subsidiaries PT Fajar Bumi Sakti and PT Pendopo Energi Batubara.
Foreign securities Citi targeted BUMI's shares to reach the price of Rp 2,900 per share, reflecting the estimated 6.1x EV/ EBITDA 2012. BUMI's shares were closed at the price of Rp 2,425 on Tuesday.
BUMI's President Director Dileep Srivastava confirmed the plan, stating that the company will explain the matter in detail at the right time.
The company is also dealing with rumors regarding the merger between BUMI and PT Berau Coal Energy Tbk, both subsidiaries of London listed Bumi Plc.
Rumor has it that Samin Tan expects to simplify the leadership structure of Bumi Plc, in addition to combine both companies' assets.
Samin Tan was told to replace Indra Bakrie as chairman of Bumi Plc, while Indra is to replace Nathaniel Rothschild who will fill the president director position of the group.
Mandiri Sekuritas, as reported by Investor Daily, stated that one possible scenario is share swap between both companies, allowing BUMI to release new shares and increase Bumi Plc's shares ownership at BUMI to 29 percent.
Other scenarios include the takeover of Bumi Resources Mineral by Bumi Plc and merger of PT Borneo Lumbung Energi & Metal Tbk , a company controlled by Samin Tan, with either BUMI or Bumi Plc.
These scenarios should be able to increase BUMI's capitalization at the stock market.(*)