PT Bumi Sources to obtain $1.6bn in capital to scale back debt

Shareholders of Indonesian coal miner PT Bumi Sources have accepted a $1.6bn share sale plan to firms managed by billionaire Anthoni Salim, as reported by Reuters.

As a part of the share placement plan, Bumi will difficulty as much as 200 billion new shares, 85% of which shall be acquired by Mach Power.

Treasure World Investments (TGIL) will subscribe to the remaining 15%.

The transfer is a part of PT Bumi Sources’ efforts to scale back its longstanding debt.

Based on a prospectus launched earlier than the shareholder assembly, Salim holds an 85% stake in TGIL, whereas Mach Power is collectively managed by Bakrie Group and Salim Group.

Reuters quoted Bumi director Dileep Srivastava as saying that the share sale plan was accepted ‘virtually unanimously’.

Srivastava added: “The utilisation of these proceeds is to repay in full current debt, so the corporate ought to be pretty much as good as debt-free.”

Underneath the prospectus, Bumi Sources has round $1.5bn of excellent debt following the restructuring.

The corporate beforehand underwent a court-led debt restructuring course of in 2016.

As soon as the share sale has closed, the brand new buyers will personal a mixed stake of round 58% in Bumi Sources. Greater than 70% of Bumi’s shares are at present owned by public shareholders.

Following the share sale, Bumi shall be collectively managed by Salim and Bakrie Group, an organization led by Indonesian tycoon Aburizal Bakrie.

Srivastava stated that the corporate can then give attention to strengthening its coal enterprise earlier than trying into non-coal alternatives.

Bumi will proceed to give attention to growing a coal gasification plant, in addition to assessing funding prospects in different minerals and renewable power.

Primarily based in Jakarta, Bumi goals to be a ‘world-class, world operator throughout the power and mining sectors’.

The corporate’s operations are divided into two subsets, particularly Coal, Oil & Fuel and Minerals/Non-Coal.

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