Income tax US$200 million from Borneo-Bumi deal
The US$3.2 billion acquisition of PT Bumi Resources Tbk's subsidiaries---PT Kaltim Prima Coal, PT Arutmin Indonesia, and PT Indocoal---by PT Borneo Lumbung Energi might give tax income of US$200 million to the state.
People at Tax Office said from tax point of view, the transaction give better deal to the state than if Borneo acquired Bumi Resources as the parent company through stock market which could give almost no income to the state.
The deal is expected to close on Friday with cash payment of US$3.25 billion of which Borneo raised US$2.1 billion debts through Credit Suisse and the remaining as equity (including equity financing of US$700 million from Singapore-based UOB).
Earlier this week, Bisnis Indonesia reported that Borneo planned to list its shares in stock market one year after the acquisition. Some investment bankers said Borneo is looking for a Singapore Stock Exchange listing.
How much the net proceeds Bumi would receive is unclear yet. But Bumi said in a letter to JSX yesterday that total cash proceeds would deducted or summed up with working capital reserves on the date of the SPA.
What to do with the cash proceeds?
First, Rp2.3 trillion for shares buyback (maximum 10% of listed shares).
Second, Rp3.8 trillion as cash dividend
Third, the rest for expansion and new projects including coal to liquid (CTL).
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People at Tax Office said from tax point of view, the transaction give better deal to the state than if Borneo acquired Bumi Resources as the parent company through stock market which could give almost no income to the state.
The deal is expected to close on Friday with cash payment of US$3.25 billion of which Borneo raised US$2.1 billion debts through Credit Suisse and the remaining as equity (including equity financing of US$700 million from Singapore-based UOB).
Earlier this week, Bisnis Indonesia reported that Borneo planned to list its shares in stock market one year after the acquisition. Some investment bankers said Borneo is looking for a Singapore Stock Exchange listing.
How much the net proceeds Bumi would receive is unclear yet. But Bumi said in a letter to JSX yesterday that total cash proceeds would deducted or summed up with working capital reserves on the date of the SPA.
What to do with the cash proceeds?
First, Rp2.3 trillion for shares buyback (maximum 10% of listed shares).
Second, Rp3.8 trillion as cash dividend
Third, the rest for expansion and new projects including coal to liquid (CTL).
Labels: Bumi Resources, COAL, CSFB
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posted by yosef at 11:12 AM
1 Comments:
And how about Bumi's plans to acquire EMP? Is that appetite still there now EMP might be in trouble over the Lapindo disaster?
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