PTBA, Antam, others eye stake in Bumi
Friday, October 10 2008 - 03:16 AM WIB
The newspaper also said several other local companies were also interested to buy Bumi?s shares, while Dow Jones Newswires reported on Thursday that Bumi will sell its 35 percent stake to India?s steel company Tata Steel Ltd.
The news came following reports that Bumi was facing financial difficulties amid the global credit crisis. The world?s coal industry and market watchers are paying close attention on the world?s largest coal exporter controlled by the Bakries, which has seen the value of its shares plummeting over the past several weeks along with the drop in oil price and the collapse of bourses across the world. The shares dropped to Rp 2,175 early this week from Rp 8,550 in June, before being suspended by the Indonesia Stock Exchange.
Bisnis Indonesia quoted PTBA?s President Director Sukrisno as saying that the firm was in talks with Antam on the acquisition plan.
Sukrisno said Bumi?s shares at the existing price was very attractive for purchase. The purchasing plan is also in line with the firm?s long-term plan to increase its reserves by buying coal assets in Kalimantan. Bumi has two giant coal units, that is East Kalimantan-based PT Kaltim Prima Coal and South Kalimantan-based PT Arutmin Indonesia.
Sukrisno said the firm and Antam may buy some stake in Bumi using internal financial resources.
Antam?s President Director Alwin Syah Loebis said the firm was interested to buy Bumi?s shares, but the acquisition depends on ?the shares? valuation and the results of due diligence?.
When asked for confirmation, Bumi?s Senior Vice President of Investor Relations Dileep Srivastava dismissed the reports as ?rumor? which he heard from ?outsiders?.
Bisnis Indonesia further said aside from the PTBA-Antam consortium, there are two other consortiums of local companies negotiating with the Bakrie family on the purchase of Bumi?s shares. One of the consortiums composes of Sampoerna, Putra Mas Agung and Tommy Winata; the other one is the Djarum consortium.
The newspaper reported that one of the consortiums even considered buying Bumi?s shares from the market through ?hostile takeover?.
Meanwhile, Dow Jones quoted a Bumi official who wanted to remain anonymous as saying that the Bakrie & Brothers would sell its 35 percent stake in Bumi to Tata Steel at Rp 2,500 a share. The firm will raise Rp 16.975 trillion (about US$1.8 billion) from the sale of the stake.
?The (preliminary agreement) of the deal has just been signed,? he said.
Dileep, who is also the spokesperson of Bakrie & Brothers, however said he had ?no knowledge of this development.? (*)