Bumi Resources: Divestment & shares buyback
PT Bumi Resources Tbk finally announced formally its plan to divest shareholdings in five companies at US$3.25 billion and the future plans, including the US$250 million shares buyback with the proceeds.
Below are excerpts of Bumi Resources announcement published today in Bisnis Indonesia and Investor Daily:
Companies divested:
- Kaltim Prima Coal (KPC): A company with 28.17 million tones of coal production last year and total proven reserves of 525 million tones. Total revenue was US$1.07bn in 2005, jump from US$659 million in 2004.
- Arutmin Indonesia: A company with 16.75 million tones of coal production last year and total proven reserves of 253 million tones. Total revenue was US$519 million in 2005, increased significantly from US$388 million in 2004.
- Indocoal Resources (Cayman) Limited: A special purpose vehicle (SPV) company with US$161 million revenue and US$26 million net profit last year.
- Indocoal Kalsel Resources: A coal mining with no revenue and Rp55 billion loss last year.
- Indocoal Kaltim Resources: A coal mining with no revenue and Rp55 billion loss last year.
Below are excerpts of Bumi Resources announcement published today in Bisnis Indonesia and Investor Daily:
Companies divested:
- Kaltim Prima Coal (KPC): A company with 28.17 million tones of coal production last year and total proven reserves of 525 million tones. Total revenue was US$1.07bn in 2005, jump from US$659 million in 2004.
- Arutmin Indonesia: A company with 16.75 million tones of coal production last year and total proven reserves of 253 million tones. Total revenue was US$519 million in 2005, increased significantly from US$388 million in 2004.
- Indocoal Resources (Cayman) Limited: A special purpose vehicle (SPV) company with US$161 million revenue and US$26 million net profit last year.
- Indocoal Kalsel Resources: A coal mining with no revenue and Rp55 billion loss last year.
- Indocoal Kaltim Resources: A coal mining with no revenue and Rp55 billion loss last year.
The buyer: PT Borneo Lumbung Energi, owned by Surjadinata Sumantri and Samin Tan. No detail information provided.
Price Tag: US$3.25 billion, well above the fair market value of US$2.04 billion to US$2.49 billion.
Payment: The buyer had deposited US$150 million in cash and would pay the remaining at the completion date of the transaction after deducting with working capital.
What to do with the proceeds: Develop oil and gas business, coal to liquid, upgraded bworn coal technology, venturing into other mineral resources such as copper through PT Citra Palu Minerals (acquired from Rio Tinto) and gold through PT Gorontalo Minerals, alternative energy, and electricity (to build 300-600 MW power plant in South Sumatra).
Buyback shares: Bumi Resources would buyback shares currently owned by public investors up to 10% of its total equity or maximum at Rp2.32 trillion (around US$250 million) or Rp1,200 per share. What to do with the shares bought back? Sell them later on at higher price, debt financing through equity-linked instruments such as exchangeable bonds, and MSOP/ESOP.
The New Look: After the transaction, Bumi Resources would have total assets of Rp33.65 trillion, most of it current assets of Rp32.3 trillion, liabilities of Rp7.62 trillion, and retained profit of Rp26.72 trillion. (These numbers are adjustment to the company's balance sheet as of December 2005).
The income statement would looks like:
- Revenue: Rp68 billion (US$7.6 million), against Rp15.92 trillion (US$1.7 billion) before divestment.
- Operating profit (loss): (Rp181 billion), against Rp2.65 trillion.
- Net profit: Rp25.39 trillion, against Rp1.22 trillion.
Price Tag: US$3.25 billion, well above the fair market value of US$2.04 billion to US$2.49 billion.
Payment: The buyer had deposited US$150 million in cash and would pay the remaining at the completion date of the transaction after deducting with working capital.
What to do with the proceeds: Develop oil and gas business, coal to liquid, upgraded bworn coal technology, venturing into other mineral resources such as copper through PT Citra Palu Minerals (acquired from Rio Tinto) and gold through PT Gorontalo Minerals, alternative energy, and electricity (to build 300-600 MW power plant in South Sumatra).
Buyback shares: Bumi Resources would buyback shares currently owned by public investors up to 10% of its total equity or maximum at Rp2.32 trillion (around US$250 million) or Rp1,200 per share. What to do with the shares bought back? Sell them later on at higher price, debt financing through equity-linked instruments such as exchangeable bonds, and MSOP/ESOP.
The New Look: After the transaction, Bumi Resources would have total assets of Rp33.65 trillion, most of it current assets of Rp32.3 trillion, liabilities of Rp7.62 trillion, and retained profit of Rp26.72 trillion. (These numbers are adjustment to the company's balance sheet as of December 2005).
The income statement would looks like:
- Revenue: Rp68 billion (US$7.6 million), against Rp15.92 trillion (US$1.7 billion) before divestment.
- Operating profit (loss): (Rp181 billion), against Rp2.65 trillion.
- Net profit: Rp25.39 trillion, against Rp1.22 trillion.
Labels: Bumi Resources, COAL, Electricity
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posted by yosef at 7:37 AM
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