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1 Nov 2011 09:39
01 November 2011
For immediate release
Bumi plc ("Bumi" or the "Company")
Update on Shareholder Credit Facility
Bumi plc wishes to draw shareholders' attention to the following announcement (attached) made today by PT Bakrie & Brothers Tbk regarding their and a Bakrie entity's shareholding, Long Haul Holdings (collectively known as the "Bakrie Group"), in Bumi plc. Under the terms of an agreement, which is subject to various approvals, PT Borneo Lumbung Energi & Metal Tbk, a listed Indonesian mining group, and the Bakrie Group will jointly own a 47.6% stake in Bumi plc.
The transaction is valued at US$1billion which values Bumi plc shares at approximately £10.91. The Bakrie Group intend to apply the proceeds to paying down the collateralised loan against its shareholding in Bumi plc considerably reducing its debt position.
For further information, please contact:
Bumi plc: + 44 (0) 20 7201 7507
Nick von Schirnding
J.P. Morgan Cazenove: +44 (0) 20 7588 2828
Ian Hannam
Credit Suisse: +44 (0)20 7888 1944
James Leigh Pemberton
Finsbury: +44 (0)20 7251 3801
Ed Simpkins
Charles Chichester
"Press Release - Bakrie & Brothers
Jakarta, 1 November 2011
PT Bakrie & BrothersTbk ("BNBR" or the "Company") is pleased to announce that as a follow up to our announcement dated 7 October 2011, the Company and another Bakrie related entity, Long Haul Holdings ("LHH" - collectively known as "Bakrie Group"), has embarked on a strategicpartnership with PT Borneo Lumbung Energi & Metal Tbk ("BORN") with the signing of a Sales and Purchase Agreement ("SPA") which took place in Jakarta on 31 October 2011.
Under the terms of the SPA and upon completion of the transaction, Bakrie Group and BORN will own indirectly 47.6%shareholding in London listed Bumi pic, which in return owns direct and indirect investments in PT Bumi Resources Tbk, PT Berau Coal Energy Tbk and PT Bumi Resources Minerals Tbk.
The transaction is valued at USD 1 billion which values Bumi plc's shares at approximately GBP10.91at the date of announcement, representing a premiumof:
• Approximately 46% to the closingprice of Bumi plc's shares on the LSE on 28
October 2011 and approximately 45% premium to the last 20-day volume-
weighted averagetrading price of Bumi plc's shares.
• Approximately 5% premium to the last 6 month volume-weighted average trading price of approximately GBP10.34
The consideration will be payablein cash and Bakrie Group will use the proceeds from the transaction to pay down a financing facilityinitially coordinated by CS ("CS Loan"), therefore reducing BNBR'soverall debt positionconsiderably.
Bakrie Group expects to complete the transaction onor around the end of December 2011 following BORN shareholders approving the transaction and satisfaction of regulatory and other approvals.
"This transaction is another important step forward for the Company as it enhancesour objectives for the creationof an "Indonesia Inc." in an international mining company. The deleveraging aspect of this transaction is also important as it provides BNBR with a healthier and stronger balance sheet. Furthermore, we have again demonstrated our commitment to meet our creditors' obligations and highly appreciate their support towards BNBR especially during these volatile market conditions," said Bobby Gafur Umar, President Directorand CEO of BNBR.
BNBR will make appropriate disclosures upon completion of all relevantdocumentation and approvals.
Credit Suisse assisted BNBR in a financial advisorycapacity."
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