Shareholders okay Bumi?s plan to sell KPC, Arutmin

Shareholders of JSX-listed coal mining house PT. Bumi Resources on Wednesday okayed the company?s plan to sell its entire 100 percent shares in South Kalimantan coal miner PT. Arutmin Indonesia and 95 percent shares in East Kalimantan coal miner PT. Kaltim Prima Coal (KPC) to PT.Borneo Lumbung Energi for US$ 2.3 billion.

The company?s Corporate Secretary Geroad Jusuf said after the company?s extraordinary shareholders? meeting that the company would pay shareholders Rp.10 (US$ = Rp. 9,100) per share, making the 2005 dividends toltaled Rp.15. Jusuf also said that the company would distribute special dividend of Rp.190 per share upon completion of Arutmin and KPC sale.

Jusuf said that the company's extraordinary meeting also agreed to buy back the company's 10 percent oustanding shares at maximum price of Rp.1,200 per share.

Bumi, which is controlled by the family of the coordinating minister for the people?s welfare, Aburizal Bakrie, bought 80 percent of Arutmin from BHP Billiton in 2001 for US$ 148.5 million and 20 percent from the Bakrie Group for $37 million. Two years later, Bumi bought 100 percent of Kaltim Prima for $500. million from BP Plc and Rio Tinto Group.

Bumi president Ari S. Hudaya earlier said that the sale of the stakes would allow Bumi to realign its focus on the energy and natural resources sectors, which management believed held out the prospect of greater long-term benefits for Bumi.

?The company will continue to actively seek business opportunities in the oil, natural gas, minerals and alternative energy sectors,? he explained.

He also said that the company would spend $1.5 billion of the divestment proceeds on setting up plants to turn coal into diesel in Kalimantan and Sumatra. (godang)