Salim buys RI’s largest coal supply, discounted price!

Jakarta, CNBC Indonesia – The country’s giant conglomerate, the Salim Group, will become one of the largest coal-holding companies in Indonesia. Of course this will happen if the additional capital is implemented and approved by the shareholders at the meeting tomorrow, Tuesday (11/10/2022).

As is well known, the Salim Group is one of the three main investors in which they invest private placement Bumi Resources (BUMI) which according to the prospectus is called “will be implemented by the end of October 2022”.

Meanwhile, two other investors are the Bakrie Group and Agoes Projosasmito, who currently holds the position of President and Director of Bumi Resources Minerlas (BRMS), which is a subsidiary of BUMI.

In this corporate transaction, a maximum of 200 billion new shares will be issued with the strike price set at Rp 120 / share. This price is much lower than the current market price of BUMI stock, or a 35% discount from last week’s closing price of Rp. 186 / action.

The entry of the Salim Group represents a new breath for the development of BUMI, which is one of the broadcasters with the largest reserves in Indonesia. On the other hand, this may also be a new source of money for the Salim Group, which indirectly annexes the Indonesian coal giant’s reserves at a discounted price.

Citing research reports Samuel Titles At the end of April this year, among the seven listed Indonesian giants, the company owned by the Bakrie family was in first place in terms of overall resources. BUMI’s coal resources are estimated at 10.08 billion tons, higher than ADRO (8.4 billion tons) and PTBA (5.89 billion tons), which are in second and third place respectively.

Meanwhile, in terms of total reserves, with reserves of 2.46 billion BUMI is in second place, below the PTBA (3.05 billion tons) and almost double the reserves of ADRO (1.30 billion tons) in third place.

Owner BUMI Post Private Entry

If the corporate transaction is completed and according to plan, BUMI will obtain new funds up to Rp 24 trillion. and will be used almost exclusively to pay off the company’s debts.

Prospectus private placement BUMI claimed that a maximum of US $ 1.56 billion or equivalent to Rs 23.4 trillion would be used (assuming an exchange rate of Rs 15,000) to pay off the company’s obligations in the form of PKPU debt payment. The total PKPU debt balance after the July 12, 2022 payment plan is US $ 1.73 billion.

Next private placementPKPU’s residual debt is expected to amount to a maximum of US $ 1.56 billion because US $ 221.31 million of debt is paid out using the company’s internal liquidity and share of additional interest up to the maturity date. December 11, 2022 is a high of US $ 54.85 million.

Given that the value of PKPU Debt is denominated in US dollars, the implementation of the deposit of funds in PMTHMETD (private placeholder/ PP) by the investor will be made in US dollars, which has been agreed to be converted into Rupee value at an exchange rate of Rp. 15,000 for 1 US dollar. The total fund raised is $ 1.6 billion.

To send private placement, The Salim Group is the new controller of the company together with the old controller, the Bakrie Group.

The total shares of the Bakrie Group after the capital increase will rise to 28.38%, consisting of the indirect ownership of 21.01% of the shares of BUMI through Mach Energy (Hongkong) Limited (MEL) which will purchase 170 billion new shares of BUMI. Meanwhile, the remaining 7.37% is made up of the original Bakrie Group shares in BUMI before PP which has been diluted.

Furthermore, the Salim Group will control 28.33% of the shares of BUMI after the capital increase. Similarly to the Bakri Group, 21.01% of BUMI’s shares are controlled by the Salim Group indirectly through MEL. Meanwhile, the remaining 7.32% of BUMI’s shares are held indirectly through Treasure Global Investments Limited (TGIL) which will order 30 billion new PP shares.

Then there is Agoes Projosasmito which controls Clover Wide Limited and PT Aswana Pinasthik Investasi which is a shareholder of MEL and TGIL respectively.

The total share ownership of BUMI by the joint venture Agoes Projosasmito is 8.83% post-PP. Then the ownership of the HSBC Fund was diluted to 4.32% and, finally, the public ownership affiliated to the Bakrie Group was also diluted to 30.15% from the original 72%.

RESEARCH TEAM OF CNBC INDONESIA

[Gambas:Video CNBC]