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Rothschild aquires stake in Indonesia's coal companies | Xinhua
2010-11-18 10:52:27
JAKARTA, Nov. 18 (Xinhua) -- Indonesia's resource sector has received a huge boost of confidence with the entry of global financial investor Nathaniel Rothschild and his 3 billion U.S. dollars stake in two of the country's largest coal mining companies, local media reported here on Thursday.
Rothschild will buy a 25 percent stake in the country's largest coal miner, Bumi Resources, and a 75 percent stake in Berau Coal, the fifth-largest producer, through his London-listed Vallar in a cash and stock transaction.
The deal caught many market analysts flat-footed as it will now allow the powerful Bakrie Group, the parent company of Bumi Resources, to become the largest combined shareholder in Vallar, which will be renamed Bumi.
Rothschild's bold move into Indonesia's resource sector will position him as a major player in the energy sector and allow the Bakrie Group to clear a large chunk of its 1.3 billion U.S. dollars debt.
It also highlights a major turnaround for Bumi Resources, which was last year facing down angry shareholders after its stock price plunged amid fears of a possible default.
"This deal is good for Indonesia as it will really stimulate and support the resource sector," David Knight, head of corporate services at OAM Group Indonesia was quoted by the Jakarta Globe. OAM advises on mergers and acquisitions and conducts due diligence for Indonesian conglomerates. "Such a transaction will attract more investments in Indonesia' s resource sector," Knight added. Tuesday's deal comes three years after another major foreign acquisition of Indonesian coal assets. In 2007, India's Tata Group acquired a 30 percent stake in Kaltim Prima Coal and Arutmin, both owned by Bumi Resources, for $1.1 billion.
Indonesia overtook Australia to become the world's biggest exporter of power-station coal in 2005, according to Morgan Stanley. Prices for the fuel rose 40 percent this year.
The Vallar deal, which will bring together Bumi Resources and Berau Coal's production, which is estimated to reach as much as 140 million metric tons a year by 2013, would create the largest thermal-coal supplier to China, Rothschild said during a conference call.
The miners' combined coal resources total about 12 billion tons, according to a company presentation.
2010-11-18 10:52:27
JAKARTA, Nov. 18 (Xinhua) -- Indonesia's resource sector has received a huge boost of confidence with the entry of global financial investor Nathaniel Rothschild and his 3 billion U.S. dollars stake in two of the country's largest coal mining companies, local media reported here on Thursday.
Rothschild will buy a 25 percent stake in the country's largest coal miner, Bumi Resources, and a 75 percent stake in Berau Coal, the fifth-largest producer, through his London-listed Vallar in a cash and stock transaction.
The deal caught many market analysts flat-footed as it will now allow the powerful Bakrie Group, the parent company of Bumi Resources, to become the largest combined shareholder in Vallar, which will be renamed Bumi.
Rothschild's bold move into Indonesia's resource sector will position him as a major player in the energy sector and allow the Bakrie Group to clear a large chunk of its 1.3 billion U.S. dollars debt.
It also highlights a major turnaround for Bumi Resources, which was last year facing down angry shareholders after its stock price plunged amid fears of a possible default.
"This deal is good for Indonesia as it will really stimulate and support the resource sector," David Knight, head of corporate services at OAM Group Indonesia was quoted by the Jakarta Globe. OAM advises on mergers and acquisitions and conducts due diligence for Indonesian conglomerates. "Such a transaction will attract more investments in Indonesia' s resource sector," Knight added. Tuesday's deal comes three years after another major foreign acquisition of Indonesian coal assets. In 2007, India's Tata Group acquired a 30 percent stake in Kaltim Prima Coal and Arutmin, both owned by Bumi Resources, for $1.1 billion.
Indonesia overtook Australia to become the world's biggest exporter of power-station coal in 2005, according to Morgan Stanley. Prices for the fuel rose 40 percent this year.
The Vallar deal, which will bring together Bumi Resources and Berau Coal's production, which is estimated to reach as much as 140 million metric tons a year by 2013, would create the largest thermal-coal supplier to China, Rothschild said during a conference call.
The miners' combined coal resources total about 12 billion tons, according to a company presentation.
