Long Haul, Minarak to get Rp 714.6 billion from Bumi?s private placement

Long Haul Holding Ltd. and Minarak Labuan, the shareholders of publicly listed PT Bumi Resources Tbk will get Rp 714.6 billion (1$=Rp 8,650) from the sale of Bumi?s 1.8 billion shares through private placement, Bisnis Indonesia newspaper reported in its Monday edition.

A source told Bisnis that the amount was based on the agreed price of Rp 397 per share, which was far below the market price on the day of private placement.

"Placement price for Bumi's shares was Rp 397, far below the market price,? the source said.

According to the source, the placement opened on last Friday and closed on the same day evening. However, the offer process was continued until Saturday for foreign investors. Bumi's shares were closed at Rp 450 each on Friday on the Jakarta Stock Exchange (JSX).

"Bumi's shares (9.3 percent) will be changed hands on Monday through cross trading on the stock exchange," the source said.

The JSX and Surabaya Stock Exchange (SSX) suspended the trading of Bumi's shares on Friday following plans by two major shareholders to sell their stake.

The bourses took the action after being notified by Bumi about the private placement plan by Long Haul and Minarak. Bumi is the owner of the country's giant coalminers PT Kaltim Prima Coal (KPC) in East Kalimantan and PT Arutmin Indonesia in South Kalimantan.

PT BNP Paribas Peregrine is working as a private placement agent.

In December 2003, Long Haul sold 5.15 percent or 1 billion shares of Bumi to foreign investors. After the sale of 5.15 percent stake, Long Haul still has 55.28 percent ownership in the company. (*)