Nov 18, 2011

Bumi, Recapital & Bukit Mutiara loan

Indonesia's largest coal exporter PT Bumi Resources Tbk (BUMI) has reached agreement with PT Recapital Asset Management on the repayment of US$231 million investment in the first half of 2012.
Bumi Resources also agreed with PT Bukit Mutiara for early repayment of US$251 million loan with 50% in 2012 and 50% in 2013.
According to a public disclosure filed by Bumi Plc, London-based company yesterday, these items, which were fully disclosed in the Bumi plc listing prospectus of 17 June 2011, were discussed extensively at the Audit Committee and a schedule to secure re-payment of these PT Bumi loans and investments and to use the proceeds to pay down debt was presented by the Chief Financial Officer and approved by the plc Board at its meeting in Jakarta on 12 October.
It also is agreed that there will be progressive realisation and in all cases marking to fair value of the business development assets in Bumi Resources.
The investment in Recapial and loan to Bukit Mutiara have been highlighted by Nathaniel Rothschild, who owns 11.71% stake in Bumi Plc, on his official letter to Ari Saptari Hudaya, Bumi Plc CEO. 
Referring to Bumi Resources's June financial report, page 75, the company and Recapital Management,  On August 27, 2008, entered into a discretionary fund contract for a period of 6 months and subject to extension as agreed by both parties. 
Based on this contract, Bumi Resources will give full  authority to Recapital as investment manager to carry out the management of Bumi Resources funds up to an amount of US$350 million.
On February 28, 2011, the agreement was extended until August 27, 2012.  On September 2, 2009, Bumi and Recapital entered into a second discretionary  fund contract for a period of 6 months and  subject to extension as agreed by both parties. 
Based on this contract, Bumi will give full  authority to Recapital as investment manager to  carry out the management of Bumi’s funds up to an amount of US$50 million. On  February 28, 2011, the agreement was extended until August 27, 2012. All short-term investments are with third parties. 
Check page 93, On November 2, 2009, Bumi also entered into a loan agreement with Bukit Mutiara, wherein the Company agreed to grant a loan facility with the principal amount up to US$300 million to
Bukit Mutiara in connection with a share sale and subscription agreement, which Bukit Mutiara is negotiating in relation to the acquisition of an indirect 90.0% interest in PT Berau Coal. The loan is unsecured and shall be repaid in full upon its maturity in 2015. The interest rate  of the loan is 12% per annum and is payable
every quarter
Bukit Mutiara is 99.6% owned by PT Bentara Energi Asia Utama and Arnanto holds 0.4% stakes. PT Recapital Advisors owns 99% of Bentara Energi and Andy Widya Susatyo hold 1% stakes in Bentara.
Recapital Advisors is 99.11% controlled by PT Tripillar Gunaperkasa, while the remaining is owned by Rosan P. Roeslani, Recapital Advisors' President Director.
Tripillar Gunaperasa is controlled by Rosan Roeslani of 73%, Sandiaga S. Uno of 12%, and Elvin Ramli holds 15% stakes.

Disclosure: No position at the stock mentioned above.

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