Apr 3, 2011

Berau Energy to pay fee to Sojitz

One by one, London-based company Vallar Plc and backed-up by Bakrie family have removed several stumbling blocks that could jeopardize closing date of acquisition on two coal precious assets in Indonesia, PT Bumi Resources Tbk (BUMI) and PT Berau Coal Energy Tbk (BRAU).
After Bakrie family, via PT Bakrie & Brothers Tbk (BNBR) and Long Haul, successfully transferred 5.19 billion shares or 25% shareholding in Bumi to Vallar for the exchange of 49.39 million of new shares issuance by Vallar to Bakrie family, Bakrie family has finally reached an agreement with a Japanese single minority shareholder in PT Berau Coal, a 90% stake owned by Berau Energy, Sojitz Corporation.
In an official statement to Indonesia Stock Exchange (IDX) late last week, Berau Energy President Director Rosan P. Roeslani, said that Berau Energy has entered into consent agreement with Berau Coal, Aries Investment Limited, PT Armadian Tritunggal, and Sojitz.
Referring to the agreement, Sojitz can eventually provide its consent to Berau Coal in relation to financing, additional financing, and guarantee approval by Berau to several creditors of Berau Energy.
In return, Berau Energy has committed to pay an annual ongoing fee as much as 0.4% of total financing and additional financing owed to Sojitz. The payment will be made in quarterlly basis to Sojitz.
Rosan said the payment of ongoing fees will not make Berau Energy to breach a shareholder agreement with Sojitz. Berau Energy can secure additional financing in which Berau Coal as guarantor. How much fee should be paid by Berau Energy? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.

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