JAKARTA (Yosefardi) – Giant coal producer PT Bumi Resources Tbk (BUMI) has set prices of 19% shares in its unit PT Kaltim Prima Coal (KPC) and 42% shares in PT Bumi Resources Minerals Tbk (BRMS), to be delivered to China Investment Corporation (CIC) as part of debt settlement.
KPC is priced at US$950 million while BRMS’ value is set for US$257.4 million. BUMI has in October 9, 2013 signed agreement with CIC for unpaid principal debt of US$1.3 billion.
BUMI will also convert 19% shares of Indocoal Resources (Cayman) Ltd and 19% shares of PT Indocoal Kaltim Resources into CIC’s debt. BUMI itself will also issue new shares worth US$150 million.
The rest of debt, excluding principal debt, amounting US$430 million will be converted into loan with tenor of 3 years with a competitive interest rate.