Bakrie Family to Raise IDR48.4 Trillion

Bakrie family is going to raise IDR48.4 trillion from the sales of shares of PT Bumi Resources Tbk (35%), PT Energi Mega Persada Tbk (40%), anf PT Bakrieland Development Tbk (40%) to PT Bakrie & Brothers Tbk.

With the funds, Bakrie family will be ready to become the standby buyer in Bakrie & Brothers's rights issue, which will be done to maintain the ownership of the company at 28%.

However, there is a possibility Bakrie would increase its shares if investors don't exercise their rights in the corporate action.

Following the acquisition plan, President Director of Bakrie & Brothers Bobby Gafur Umar revealed the company prepared several financing options, such as through rights issue (IDR40.1 trillion), warrant issuance (IDR2.9 trillion), and banking loans (IDR8.3 trillion).

He continued in the rights issue, Bakrie & Brothers would be helped by financial advisors Danatama Makmur and CLSA. "The management of the company has talked about this with Bakrie family. After a long negotiation, both parties finally reached a sale and puchase agreement," he informed at a press conference in Jakarta last week.

Bobby added the acquisition process was expected to be completed in April 2008 after the Shareholders General Meeting gave their approval

"We will buy 6.79 billion shares of Bumi, 5.76 billion shares of Energi, and 7.84 billion shares of Bakrieland worth IDR36.9 trillion, IDR7.2 trillion, and IDR4.3 trillion, respectively," he exposed.

Lift suspension

Listing Director at the Indonesia Stock Exchange (BEI) Eddy Sugito disclosed BEI woud lift the suspension of Bakrie & Brothers's stock once the company had submitted their complete prospectur.

BEI on January 16 suspended Bakrie & Brother's stock until further notice.
The stock price on January 15 was closed at IDR280, down by 3.45% from IDR290 a day before.
Concerning the financial performance of the company, Financial Director of Bakrie & Brothers Yuanita Rohali explained the company in October 2007 booked IDR13.5 trillion in pre-acquisition asset value.

"After the acquisition, the company's asset value will soar to IDR36.5 trillion and the company's net profits will also skyrocket from IDR167.5 billion to IDR2.99 trillion."

Yuanita said of IDR51.3 trillion in total funds, IDR48.4 trillion would be used to acquire the three companies.