Closing of Bumi's divestment of KPC and Arutmin shares delayed

The closing of Bumi Resources Tbk's sales of its entire stakes in three major coal mining companies including PT Kaltim Prima Coal (KPC), PT Arutmin Indonesia and PT Indocoal Kaltim Resources to a consortium led by Borneo Lumbung Energy has been delayed to give the buyer more time to arrange the financing for the US$3.2 billion takeover deal, Bisnis Indonesia reported Friday.

Geroad Jusuf, the corporate secretary of Bumi Resources, said in Jakarta Thursday that the transaction would be concluded by the end of July, a month delay from the initial schedule of June 31.

He said that Borneo through its vehicle company was finalizing financing facilities worth about US$2.1 billion from between 20 to 40 foreign banks with the help of loan arranger Credit Suisse to partly finance the takeover.

In addition, Borneo, with the help of UOB Singapore, was also preparing the issuance of convertible bonds worth about US$700 million to help finance the takeover, Jusuf said.

Bumi Resources recently agreed to sell the company's entire stakes in KPC, PT Arutmin and Indocoal Resources to a consortium led by Borneo Lumbung Energy for US$3.2 billion. The sales had been approved by the company's shareholders during an extra-ordinary meeting in May, (*)