Bumi Resources allocated IDR3.9 trio to buyback

BI/market
23/8/2011
Irvin Avriano A.
Bisnis Indonesia


Bumi Resources allocated IDR3.9 trio to buyback

JAKARTA: Bakrie Group coal miner giant listed company PT Bumi Resources Tbk allocated IDR3.9 trillion to buy back 780 million shares to lift its earnings per share, return on equity and expand access to finance.

The matter is exposed in the information disclosure yesterday, together with its extraordinary general meeting of shareholders (EGM) on September 26th.

"The funds reserved for shares buy back shares for a maximum period of 18 months since the EGM approval is obtained, is not more than IDR3.9 trillion," said Bumi Resources management led byAri Saptari Hoedaja in its announcement yesterday.

The amount of funds provided also refers to the assumption of a purchase price of IDR5,000 per share. The company, which shares codede BUMI, will execute the repurchase of its shares in public with internal cash funds that are on retained earnings account. Bumi Resources already picks PT Danatama Makmur as the buyback arranger.

Previously, the company plans to hold another EGM to seek approval from the sales of subsidiary shares in mining minerals namely PT Bumi Resources Minerals Tbk. Sales of shares of the holding company of PT Newmont Nusa Tenggara also associated with the master plan of Bumi plc which want to acquire Bumi Minerals from Bumi Resources.

Bumi plc, formerly known as British listed company Vallar plc, will take over Bumi Minerals whose coded BRMS with a convertibel bond scheme.