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Bumi Resources’ rights issue plan may face delay
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PT Bumi Resources' board of directors explains the company's performance in a press conference in Jakarta on Thursday. (Kompas.com/Estu Suryowati)
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ndonesia's largest thermal coal miner, PT Bumi Resources, is likely to see its rights issue plan delayed as the Financial Services Authority (OJK) has yet to issue approval, as previously expected.
“As Bumi’s rights issue structure is rather complex and novel, it needs more time possibly to process this rights offering transaction,” Bumi corporate secretary Dileep Srivastava told The Jakarta Post on Friday. “[It’s] just procedural issues and in process, may take a week or more.”
Under its debt-restructuring plan, Bumi will convert its US$1.9 billion debt into equity at Rp 926 (7 US cents) per share.
Meanwhile, another $639 million debt will be covered with convertible bonds, technically known as mandatory convertible bonds (MCB) in scripless form. With an annual coupon rate of 6 percent and a maturity period of seven years, the MCBs will be available at Rp 1.
The equities and bonds will be issued with preemptive rights to purchase securities (HMETD) for existing shareholders. The trading for the rights is scheduled for June 12 to 16.
At present, private investment company Long Haul Holdings Ltd, owned by local politician Aburizal Bakrie, holds a majority stake of 30.11 percent in Bumi.
“Post-restructuring, assuming there is no subscription by any existing shareholders, we take that Long Haul Holding’s shares can come down to around 17 until 18 percent,” Dileep previously said. (ags)
