British-based investment company Vallar Plc, which was renamed into Bumi Plc, has confirmed that it will exercise a step-up transaction, enabling the company to increase its shareholding in Indonesia's largest thermal coal exporter PT Bumi Resources Tbk to 50+% from currently 25% stake.
Market so far expects that Vallar will make a purchase on Bumi shares from the market. But, Daren Morris, one of Vallar's founders, said the step-up transaction will be exercised through a share swap with ratio of one Vallar new share for 57.7 shares of Bumi Resources.
"No cash market purchase at this time is planned," told Daren to Insider Stories 2 days ago.
He said the earliest date to exercise the step-up transaction will be on May 10 as Vallar is allowed to issue new shares from May 10 onwards. Bumi shares today jumped 7.9% to Rp3,400 per share. Is is a sign that Bakrie Group to make a purchase from the market? Please login or register to read the remaining story.
Disclosure: No position at the stock mentioned above.
Print This Article