Dec 14, 2011

Borneo delays EGM on Bumi Plc takeover


Coking coal PT Borneo Lumbung Energi & Metal Tbk (BORN), that is controlled by Indonesian businessman Samin Tan, officially delayed an extraordinary general meeting (EGM) intially scheduled on December 15 2011.
The EGM was aimed to seek approval on acquisition of 23.8% stake in Bumi Plc worth US$1 billion. The EGM was also intended to approve material transactions and shares buyback.
Borneo management said the EGM has been delayed until the next announcement. The company has not declared a certain date for the next EGM. However, Borneo has not explained the reason. Is it due to approval from Bapepam-LK?
Usually, prior to hold the EGM, Bapepam-LK gives comments about certain material transaction. The deferral may potentially delay the closing date of the takeover.
According to the EGM agendas, Borneo is seeking approval to acquire 25.1% stake or 60.44 million shares in Bumi Borneo from PT Bakrie & Brothers Tbk and Long Haul Holding Ltd.
Borneo also seeks approval to buy 22.5% stake or 54.15 million shares in Borneo Bumi. Borneo also plans to pledge more than half of its assets to finance the take over.
Stellar figure Samin Tan,  who is known as one of closest buddies for Nirwan D. Bakrie, announced a 23.8% stake takeover in London-based Bumi Plc. 
Borneo Lumbung Energi is 75%owned by PT Republik Energi & Metal. Previously, Republik Energi is controlled by two ultimate shareholders, Samin Tan and its senior partner Surjadinata Sumantri.
Several sources said Surjadinata has disposed his stake in Republik Energi to a certain buyer. However, there is no information available about the buyer.
"Surjadinata might sell his stake in Republik Energi to Samin Tan. It was a make sense exit strategy," said one of an investment banker.   
Samin Tan and Borneo Lumbung Energi strived to acquire PT Bumi Resources Tbk (BUMI), the most precious asset for Bumi Plc and Bakrie family in 2006. But, the deal was collapsed due to certain reason. 


Disclosure: No position at the stock mentioned above.

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