Tuesday, November 14, 2006

KPC & Arutmin divestment

Bisnis Indonesia reported today that five investors are competing to acquire 30% shares of PT Bumi Resources Tbk coal mining subsidiaries of PT Kaltim Prima Coal and PT Arutmin Indonesia. Who are they?

Bumi management declined to disclose the names, only that they are from Japan & Australia. Credit Suisse is the coordinator for the divestment.
The price? The management didn't clearly disclose how much proceed they expect from the divestment. But the paper quoted an analyst that the price assumption is somewhat similar with the US$3.2 billion collapsed deal between Bumi and Renaissance Capital which translates to US$1 billion for 30% shares of KPC & Arutmin.
What to do with the money? To pay the debts (Bumi?) plus dividend (if any?).
The major problem with Bumi's corporate actions is the huge gap between the announced plan and reality. They simply forget the general belief that actions speak louder than words!

Labels: , ,



Post a Comment

<< Home