Monday, September 25, 2006

Bumi Resources: Buyback, who said so?

Here we go. Last week, Bisnis Indonesia quoted Nalin Rathod, commissioner of PT Bumi Resources Tbk, saying the company secured US$1.2 billion funding. But today, Bumi Resources management told JSX that the statement is not formal statement from the company.
In the letter to JSX today, Bumi Resources management also denied the newspaper report that part of the funds, currently being raised, would be used to buy back some shares. The company stated US$395 million of the US$1.2 billion would be used as working capital and general purpose. So, forget about the buyback for a while.
Bumi said the final amount of funds raised would be announced on September 29. As far as I remember, the company stated few weeks ago that it would pursue the shares buyback. But the implementation of the plan would be pending the result of divestment of up to 20% shares in the subsidiaries.
So far, no clear progress on the divestment after the collapse of US$3.2 billion divestment of subsidiaries (KPC, Arutmin & Indocoal) to Borneo Lumbung Energi late last month.




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