The Directors of Bumi Plc have decided to assign no value to the investment made by PT Berau Coal Energy Tbk in Chateau.
This investment was previously held at US$75 million. With a corresponding increase in the value attributed to the coal mining properties at acquisition, there is no overall effect on the value of net assets acquired.
Since acquisition, the Directors are of the view that their investment in Berau Coal has become more valuable.
The investment in Chateau remains in the books of PT Berau under Indonesian GAAP, at US$47 million.
Berau Coal signed an investment agreement with Chateau Asean Fund 1 on January 26 2010. Chateau issued premium convertible unsecured loan notes. Chateau issued premium convertible unsecured loan notes worth US$75 million.
Disclosure: No position at the stock mentioned above.
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