Set Private Placement Prices Rp120, Bumi Resources Still Controlled By Conglomerate Bakrie

JAKARTA - The mining company owned by the conglomerate Bakrie PT Bumi Resources Tbk is preparing a plan to increase capital without pre-emptive rights (PMTHMETD) or private placement. This plan will take place on 18 October.

Director & Corporate Secretary of Bumi Resources Dileep Srivastava explained, in the implementation of the private placement, BUMI's share price was set at Rp120 per share. "The determination is based on the company's agreement and investors," said Dileep in an information disclosure to the Indonesia Stock Exchange, Tuesday, September 27.

Through this action, the structure of Bumi Resources' share ownership will change with the ownership of investors reaching 58.8 percent. However, Dileep ensured that there were no change in the controller.

" Bakrie's business group will still be the controller of the company," said Dileep.

For information, the implementation of this private placement is Earth Resources' step to settle its obligations to debtors. That way, Bumi Resources can improve financial conditions and increase profitability.

In addition, the company has also prepared a debt restructuring scheme as an alternative to the private placement. "For restructuring, it cannot be carried out before the maturity of the PKPU debt," Dileep added.