JAKARTA (TheInsiderStories) - Coal producer PT Berau Coal Energy Tbk (IDX: BRAU) has bought back guaranteed senior secured notes worth $150 million from total incoming bids of $275.59 million. The buyback was made through tender offer, which expired on Dec. 16.
The company through its unit Berau Capital Resources Pte Ltd has offered to buyback the notes worth $450 million which had been defaulted on July 8 of 2015.
The company also offered to buyback the notes that will mature by 2017 valued at $500 million. The offering period was set from Nov. 24 to Dec. 16, 2015.
The unpaid portion of the $450 million notes and $500 million notes due 13 March 2017 would then be exchanged for new notes maturing on July 31 2019 and Dec 31 2020 respectively.
Berau’s Corporate Secretary Gamal Wanengpati said in the company statement to the Indonesia Stock Exchange (IDX) that the company has paid the notes on Dec. 22. He added, the average bid price that has been accepted was US$303.40 for every $1,000 of the principal amount of the notes.
Previously, President Director of Berau Fuganto Widjaja said that the debt restructuring of Berau before January 2016 is helped by Argyle Street Management Ltd, who owns 4.7 percent shares in the company.
Sinar Mas Group through its arms British Virgin Islands based Asia Coal Energy Ventures Ltd (ACE) has controlled London miner Asia Resources Minerals Plc (ARMs) after acquiring 94.19 percent of the issued and paid up capital of the firm on July 15.
According to Fuganto, the group owns ACE shares through Hong Kong’s Argyle Street Management. He said based on recent prices market capitalization of 100 percent shares of ARMs is around $200 million.
Sinar Mas gained control of ARMs and its unit Berau after British financier Nathaniel Rothschild agreed to sell his stake in ARMs last month. Rothschild abandoned plans for his own ARMs bid after a string of public spats with former shareholders Indonesia’s Bakrie family, selling his 17.2 percent stake.
ARMs general meeting has approved Sinarmas’ acquisition of loans from Vienna-based Raiffeisen Bank International AG. The lender seized control of former ARMS chairman Samin Tan’s 23.8 percent stake in October last year by enforcing on the debt he used to acquire it.
ARMs indirectly owns local coal miner Berau by holding approximately 84.7 percent of the issued and paid capital of Berau through Vallar Investment UK Ltd.
Berau has 118,400 hectares mining concession in Kalimantan, the Indonesian part of the island of Borneo. Berau now has coal reserves around 500 million metric ton of coal. (*)