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Thursday June 24, 2010

China’s CIC may be a buyer of Bumi stake

JAKARTA: PT Bumi Resources, Indonesia’s biggest coal miner by output, said Chinese sovereign fund China Investment Corp (CIC) could be one of the buyers of the company’s stake worth as much as US$495mil.

Bumi is the prized asset of the Bakrie group.

A source had told Reuters in May that CIC would be the main buyer of the placement, after Bumi said last year that CIC had lent it US$1.9bil via debt instruments.

In a statement issued yesterday in the Investor Daily newspaper, Bumi said JP Morgan, Credit Suisse and Raiffeisen Zentralbank Osterreich AG could also be potential buyers. CIC was not available for comment.

“The company is still on the edge of finalising with the creditors, the payment could be done to only one or more than one creditor,” Bumi said in the statement.

The 10% share placement, originally planned for July and from which Bumi expects to raise as much as US$495mil to pay down debt, will now be delayed until September at the request of the country’s financial regulator. — Reuters

For Another perspective from the Jakarta Post, a partner of Asia News Network, click here

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