A Mining Company Owned By The Bakrie Conglomerate Family Turns IDR 485.95 Billion Debt Into BUMI's Shares

Illustration. (Photo: Unsplash)

JAKARTA - Slowly, the mining company belonging to the Bakrie conglomerate family PT Bumi Resources Tbk (BUMI) is starting to convert its debts into shares. This step is part of the issuance of mandatory convertible bonds (OWK).

One of the debts converted into BUMI shares belongs to Innovate Capital Pte. Ltd. According to the plan, the company's debt to Innovate worth IDR 1.01 trillion will be 13.21 billion new series C shares with a conversion price of IDR 76.59.

From the plan, Bumi Resources has realized the conversion of debt into BUMI's shares of IDR 485.95 billion. This figure is equivalent to 6.07 billion BUMI shares.

As explained by the directors of Bumi Resources, quoted on Tuesday, July 12, the debt conversion was carried out through additional capital without pre-emptive rights (PMTHMETD) which took place last July 7. The exercise price is IDR 80 per share.

Bumi Resources management explained that after the PMTHMETD implementation, the total issued and paid-up capital of the company has increased from 128.86 billion shares to 134.93 billion.

Thus, referring to the original plan, Bumi Resources will still convert Innovate's debt of around IDR 571.2 billion. This value is equivalent to 7.14 billion BUMI shares.