Behind the US$3.2bn acquisition of KPC & Arutmin
PT Borneo Lumbung Energi finally won the US$3.2 billion deal to acquire two major coal producers PT Kaltim Prima Coal (KPC) at 95% sgares and 100% shares of PT Arutmin Indonesia from PT Bumi Resources Tbk. While the US$3.2 billion acquisition already become the largest acquisition in the country's stock market history, the deal is most likely just the beginning of something big.
Who are the beneficiary owners of the deal?
PT Borneo Lumbung Energi is owned by two shareholders of PT Renaissance Capital Asia, Mr Samin Tan and Mr Suryadinata with 75% and 25% shares respectively. With such scheme, the new owner have nothing to worry about the requirement to have minimum 51% shares of both KPC and Arutmin by Indonesian.
But for sure, Samin Tan and Suryadinata have no such amount of money. They got full support from four enterprises. They are PT Renaissance Capital Asia, Marubeni Corporation, Thiess Contractor, and DBZ. It's not clear of how much equity and debts in the deal. But sources said US$1 billion of equity and US$2.2 billion of debt arranged by Credit Suisse First Boston (CSFB).
Marubeni has reportedly deposited US$150 million, while Bakrie Family at US$700 million.
What's next?
PT Bumi Resources will acquire oil and gas producer PT Energi Mega Persada Tbk, and develop coal to liquid technology with South Africa's SASOL. The merger would likely to materialize next year.
New investments: Oil, gas, coal to liquid, biodiesel, biomass, and electricity.
What the Borneo Energi will do next?
That would be the vehicle to acquire PT Indocopper Investama which controls 9.4% shares of PT Freeport Indonesia. Bakrie Family once controlled the company before Soeharto's golf buddy Mohammad 'Bob' Hassan acquired Bakrie shares with Freeport's full financial support. Hasan failed to service the debts to Freeport which led to the US company's control of 100% of Indocopper. The value of Freeport's 9.4% shares is predicted at US$1 billion.
PS: Special thanks to a friend who is kind enough to provide most of the information in this article.
Labels: Bakrie, Biodiesel, Bumi Resources, COAL, CSFB, Electricity, Energi Mega Persada, FREEPORT, MARUBENI
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posted by yosef at 4:42 PM
2 Comments:
If Renaissance is ultimately owned by Bakrie (or somehow connected to the family), then is this transaction an acrobatic manouver to raise capital ? or to repatriate those that were previously invested/being hidden off-shore ?
It seems like a financial engineering done by Bumi Resources. Along with huge profit from the sale, Bakrie Family who owns Bumi Resources has dreamed to enlarge the company as well as Australian BHP Billiton and Xstrata.
I am sure that Borneo or Samin Tan is just a middle man who is willing to sell KPC and Arutmin to Bumi and chip in the assets into Energi Mega Persada.
Bumi will offer a share swap for Energi Mega's shareholders to support the giant making of integrated energy company, PT Bumi Energi.
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