PT Bumi Resources Tbk (BUMI) will pay its debts in the future through private placement funds of IDR 24 trillion and will be paid off in the next 5 days.
An extraordinary shareholders meeting approved the decision to increase capital without pre-emptive rights (non-HMETD) or private placement to issue a maximum of 200 billion shares with a transaction value of US$ 1.6 billion (equals to IDR 24 trillion).
The investors consist of Mach Energy Limited (MEL) of Hong Kong and Treasure Global Investments Limited (TGIL).
The composition of MEL’s shareholders is PT Bakrie Capital Indonesia (BCI) with a share ownership of 42.5%, which is controlled by the Bakrie Group; Clover Wide Limited with 15% share ownership, is a party controlled by Agoes Projosasmito; and Mach Energy (Singapore) Pte Ltd (MEPL) with a share ownership of 42.5%, which is controlled by Anthoni Salim. MEPL is part of the Salim Business Group.
Private placement funds
During the extraordinary shareholders meeting, 96.3% shareholders approved the private placement fund plan. Later, BUMI will hold a private placement meeting on October 18, 2022, which will then increase the company’s share capital to 143 billion shares from the previous 20.77 billion shares.
“The proceeds [of the private placement] which will be used to pay off debts,” said BUMI Independent Director and Corporate Secretary Dileep Srivastava.
BUMI CEO Adika Nuraga Bakrie said that through the private placement, the company would be debt free a maximum of 5 days after the extraordinary shareholders meeting. The company, however, would also focus on coal unit operations at the Arutmin and Kaltim Prima Coal mines.
“We hope that the inclusion of the Salim Group, which has a sustainable investment portfolio, will help sustain the business and become a benchmark for BUMI’s performance,” said Hans Kwee, Director of Anugerah Mega Investama.
Risk to coal industry
Kwee added that the price of coal today was “increasingly high”. “This will be a great momentum for both companies to collaborate,” he said.
However, there are problems in the coal sector such as logistical problems that can only be solved by improving the logistics of coal transportation from upstream to downstream.
