Aug 23, 2011

Bumi aims Rp3.90 trio shares buyback

Indonesia's largest coal exporter PT Bumi Resources Tbk (BUMI) today announces a buyback of 780 million shares or 3.75% of its outstanding shares with a commitment to spend Rp3.90 trillion cash from part of its net profit.
Bumi must complete the buyback within 18 months after it obtains approval of extraordinary general meeting scheduled on September 26 2011 or on March 26 2013. 
In an official prospectus published today, the shares buyback, held by PT Danatama Makmur, is expected to increase earning per share, return on equity, and flexibility to obtain equity-linked financing such as convertible bonds.
Vallar Investments UK Ltd is holding 29.86% stake in Bumi Resources and public shareholders hold the remaining shares. As of August 15 2011, Bumi manages 473.21 million treasury stocks and 56.73 million portfolio stocks.

Disclosure: No position at the stock mentioned above.

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