Bumi Mineral provides major re-organization information update
Monday, June 13 2011 - 08:18 AM WIB
? Vallar has announced its intention to acquire 75% ownership in BRMS from PT Bumi Resources Tbk. (?BUMI?)
? The acquisition is priced at Rp 850 / share, which represents a 21.9% premium to BRMS? 30 days average closing price of Rp 697 / share to 27 May 2011
? In exchange of the 75% ownership in BRMS, Vallar will pay a total consideration of approximately US$ 2.07 billion (which represents the acquisition price of Rp 850 / share), through its proposed new parent company, Bumi Plc, to BUMI in the form of listed Convertible Bonds.
? The convertible bonds will be convertible into approximately 79 million new Bumi Voting Ordinary Shares (79 million of Vallar?s shares) at the initial conversion price
? The transaction is expected to complete in the third quarter of 2011 and will require approval of Bumi Voting Ordinary Shareholders.
The key terms and features of the Convertible Bonds can be viewed in the attached Press Release announcement by Vallar, which can also be accessed at www.vallar.com
Ken Farrell, the CEO of BRMS, said,? The re-organization will have four immediate positive impacts on BRMS. First, we will have a simplified ownership structure. Second, a direct ownership by Vallar is expected to strengthen our corporate governance and transparency.
Third, BRMS will have closer access to the UK and European based capital markets and funds which will improve the liquidity of our stock?s trading volume. And four, the Rp 850 / share acquisition price reflects a 34% premium from the IPO price which shows Vallar?s confidence in BRMS? fundamentals and value.
Vallar?s intention to make BRMS adopt the new accounting policy to align our reporting standards with the best practice of the international mining groups will also add value to our Company.? (end of release)