Bumi to raise $496m from selling new shares

Indonesia-listed mining house PT Bumi Resources plans to raise $495.9 million by selling new shares and use the proceeds to pay debt, the company said in a statement on Wednesday.

Bumi said it plans to sell 1.94 billion new shares or about 10 percent from total company?s share at Rp 2,366 (1US$ = Rp 9,250) a piece through a non-preemptive issue next month.

A non-preemptive issue is a new share issuance in which the current shareholders have no right to purchase the shares.

The company will seek approval at a shareholder meeting June 24. The debt payment from shares issuance will reduce Bumi?s debt from US$ 5.92 billion to$5.43 billion, it said. (denny)