By Andreas Ismar
JAKARTA--PT Borneo Lumbung Energi & Metal (BORN.JK) said it
will continue with its investment in London-listed Bumi PLC
(BUMI.LN) after another Indonesian shareholder, the Bakrie Group,
Thursday proposed to pull out from Bumi.
Borneo and the Bakrie Group both own indirect stakes of 23.8%
each in Bumi, held via their joint vehicle Bumi Borneo Resources
Pte. Ltd. Samin Tan, the founder of Borneo, currently serves as
chairman of Bumi.
"BORN will continue its participation in Bumi. Samin Tan will
continue as the Chairman of Bumi," Borneo President Director
Alexander Ramlie said in a statement to the Indonesian stock
exchange. The statement was dated Oct. 11, but released on
Friday.
On Thursday, the Bakrie Group, through PT Bakrie & Brothers
Tbk (BNBR.JK) and Long Haul Holdings, offered to cancel its 23.8%
stake in Bumi and pay an undisclosed amount in cash in exchange for
Bumi PLC's 29% stake in PT Bumi Resources (BUMI.JK), one of
Indonesia's biggest thermal coal producers and a valued asset that
the politically-connected Bakrie family wants to retain control
of.
The Bakrie family, through the Bakrie Group, also proposed
paying cash within the next six months to buy Bumi PLC's 85% stake
in PT Berau Coal Energy Tbk (BRAU.JK), Indonesia's fifth-largest
coal miner.
If the Bakrie offer is accepted by Bumi PLC, Borneo and other
shareholders will see their shareholding increase on a
proportionate basis, Borneo said in the statement.
"On a bilateral basis, BORN and the Bakrie Group are negotiating
the terms of dissolution...of which include the recovery of the
amount originally invested by BORN," it added.
Write to Andreas Ismar at andreasismar.sandiwan@dowjones.com
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