Nov 16, 2010

Bakrie Group backdoor listing in London

Bakrie Group will be the largest shareholder in Vallar Plc after it completes the acquisition and shares swap deals. The deal seems to be a backdoor listing of Bakrie Group in London stock market.
In a press statement, Bakrie Group will control 43% stake in Vallar Plc, PT Bukit Mutiara, owned by Recapital Advisors, holds 24.9% stake, existing Vallar's ordinary shareholders own 28.3%, and founders hold 3.8% stake. 
In return, Indra Bakrie and Ari Saptari Hudaya will be proposed as Chairman and Group CEO of Vallar.
Vallar Plc has agreed to buy 35% stake in PT Berau Coal Energy Tbk at US$739 million or IDR540 per share and exchange its 52.3 million new shares at 10 pounds per share with 40% stake in Berau Coal Energy.
Along with the deal, Vallar also intends to exchange its 90.1 million new shares at 10 pounds per share with 25% stake or 5.19 billion shares in PT Bumi Resources Tbk (BUMI).
In return, Bakrie Group and Bukit Mutiara will control stakes in Vallar Plc, which will be renamed Bumi Plc.
Pay US$150 million
Under the agreement of the Bumi transaction, Bakrie Group has agreed to pay US$150 million if the Bumi transaction fails to complete in accordance with its terms as a result of their default.
Of this US$150 million, US$100 million will be paid into an escrow account with J.P.Morgan Chase.
J.P. Morgan Cazenove acted as financial adviser to Vallar in relation to the Bumi Transaction and provided a fairness opinion. Credit Suisse acted as financial adviser to Bumi and the Bakrie Group in relation to the transaction.
Vallar was formed through an IPO in July 2010 to acquire to acquire a major company, business or asset that has significant operations in the global metals, mining and resources sector.
Vallar PLC is admitted to the official list and is listed on the London Stock Exchange's main market for listed securities and as at the end of August 2010, has over US$1.0 billion in cash resources.

Disclosure: No position at the stock mentioned above.
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