Share sales of Bakrie & Brothers units to close in April | Insider company data
(The Insider Stories) — PT Bakrie & Brothers (BNBR) expects the share sales of PT Bakrie Pipe Industry and PT South East Asia Pipe Indonesia to close in April, its chief executive says, while two sources close to the deal say three investors–Japan’s Sumitomo Corp., Mitsui Co. Ltd. and Indonesian private equity fund Saratoga Capital–have shown interest in acquiring majority stakes in the two companies.
“We [will] release the shares in three stages. Firstly inviting them as our strategic partner, [then performing] capital injections and increasing their shares in BPI and SEAPI up to 90%,” Bakrie & Brothers CEO Bobby Gafur Umar says late Friday.
Bakrie family member Indra Bakrie previously said the funds from the share sales will be used for a buyback of PT Bumi Resources (BUMI) shares from London-based Bumi Plc. Bakrie needs US$278 million cash to fund the transaction, alongside a share swap.
Bakrie & Brothers booked 2012 revenue of 15.48 trillion rupiah ($1.6 billion) and net profit of IDR354.87 billion and reduced its debt 40% from IDR10.71 trillion to IDR6.44 trillion. 66% of Bakrie & Brothers’ revenues are contributed by its subsidiaries, Gafur said.
(This post has been updated to add the name of Saratoga Capital, which was originally identified only as an Indonesian company.)
