Friday, August 31, 2012

PT Bumi Resources Tbk : Bumi Resources Signs Deal to Sell 50% Stake in Unit for $200 Million - Sources

08/30/2012 | 11:17pm US/Eastern
By Edhi Pranasidhi
JAKARTA--Thermal coal company Bumi Resources (BUMI.JK) has signed a pact to sell its entire 50% stake in unlisted coal unit PT Fajar Bumi Sakti for $200 million, people involved in the deal told Dow Jones Newswires on Friday, as it sheds assets to pay off some of its debt.
The move comes days after Bumi Resources reported that it swung to a net loss of $322 million in the first-half of 2012, raising concerns on how it will repay the $1.3 billion worth of loans it owes China Investment Corp., or CIC.
A banker on the deal said Bumi Resources will use the proceeds from the stake sale to repay $600 million of its total loans from CIC.
"The stake sale in the unit is expected to be completed within weeks," the banker, who didn't want to be named, said.
The people didn't name the company that will buy the stake but said it was a firm based in Indonesia.
Bumi has said earlier it is planning to repay up to $1 billion of its total debt of $3.8 billion as of June 30 by selling off assets and refinancing with cheaper loans. 
Write to Edhi Pranasidhi at edhi.pranasidhi@dowjones.com
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