Thursday, February 02, 2006

M&A: Bumi Resources-Energi Mega a hoax!

The rumor was already there for so long simply because of both PT Bumi Resources Tbk and PT Energi Mega Persada Tbk are linked to Bakrie Family. Other reason, both are energy producers. But merger between a coal mining producer (Bumi's main business) and oil-gas company (Energi) is not familiar.
First of all, we have to ask creditors as both companies raised a lot of money in the last few years to finance their aggresive actions and most of the assets are pledged.
Take a look at Energi. CSFB has US$173 million loans at the company with pledged shares. Merril Lynch has US$125 million loans, also with pledged assets. CSFB (Singapore) is also the shareholder of Energi with 14.75% shares.

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