JAKARTA (Indonesia Today) – Bumi Resources (BUMI) regained grounds and closed substantially higher by 11.11% in Jakarta Friday (August 31), following reports that the company divests 50% shares in coal subsidiary PT Fajar Bumi Sakti (FBS) for US$200 million.
BUMI dropped to Rp620 Friday morning, but then rallied to close at Rp710. Bumi Plc, owner of 29% shares in BUMI, also ended higher by 8% in London Stock Exchange Friday afternoon.
Reuters quoted sources that BUMI plans to divest 50% shares on FBS for US$200 million. Proceeds are expected to repay portion of the group’s existing debts.
BUMI has dropped substantially in recent months, falling more than 60% year-to-date. The company has just reported US$322 million net loss in the first half of 2012. (bintang@theindonesiatoday.com)
How Real the FBS Divestment? Read Yosefardi.com