Release: Bumi announces financial closure of the sale of 30 % stake to Tata Power

June 27, 2007 -- PT Bumi Resources Tbk (“Bumi”) is very pleased to announce the financial closure of the sale of a 30% stake in PT Kaltim Prima Coal (“KPC”), PT Arutmin Indonesia (“Arutmin”) and related coal companies (“Coal Companies”) to The Tata Power Company Limited (“Tata Power”) (the “Share Sale”) as per the terms of the Sale Purchase Agreement dated 30 March 2007 and by such corporate actions, all of Bumi’s Coal Companies would be debt free.

 

The major part of the Share Sale proceeds would be used to fully redeem the outstanding balance of the US$900 million IndoCoal 2006-2 Notes and repay all intercompany debt in the Coal Companies. In anticipation of the completion of the Share Sale, Bumi announced an interim dividend in 2007 of Rp66 per share to its shareholders in its AGM/EGM on 23 May 2007 in Jakarta.

 

A Board of Commissioners and Directors meetings of all Bumi’s coal subsidiaries have been held today and the newly constituted Boards formally inducted Tata Power members into the respective Boards, including KPC and Arutmin as per the terms of the Shareholders’ Agreement dated 30 March 2007. In addition, the coal off-take agreement with Tata for the sale of 10.8 million tonnes per annum of thermal coal at index linked prices for 12 years starting from 2009 will become effective from today.

 

Ari Hudaya, President Director of Bumi commented “We view this Share Sale to Tata Power, the largest private sector power producer in India and part of the diversified and globally reknowned US$27 billion Tata Group as tremendously synergistic and mutually beneficial presenting many opportunities for long-term strategic partnering for Bumi in realizing its vision to become a world class diversified mining resource company. We took forward to working closely alongside Tata Power and maximize future value to all our stakeholders”.

 

Prasad Menon, Managing Director of Tata Power commented “We are happy to complete the Share Sale, It’s our endeavour to maximize shareholder value and securitize our fuel requirements in light of the aggressive growth plans chartered out by our company”.

 

Credit Suisse (Singapore) Limited acted as exclusive financial advisor to PT Bumi Resources Tbk in relation to the Share Sale transaction. (end of release)