bakrie-melodrama-takes-a-new-twist

Bakrie melodrama takes a new twist

Bumi Resources, Bakrie's prized asset, sets out on a spending spree at New Year premium prices, and unsurprisingly causes confusion.

By Rupert Walker

January 08, 2009

At first glance, the purchase of three local coal mining companies within a week by IndonesiaÆs Bumi Resources might look like a tidy exercise in industry consolidation. But, in the context of the Bakrie Brothers melodrama that is both entertaining and exasperating JakartaÆs financial community, it is unlikely to be so straightforward.

Yesterday, PT Bumi Resources said in a letter to the Indonesia Stock Exchange that it had signed a share purchase agreement with Indomining Resources Holding to buy an 89% stake in Pendopo Coal for Rp1.3 trillion $118 million. Pendopo Coal has a 94.9% holding in Pendopo Energi Batubara. The deal, to be completed within two years, follows two other acquisitions in the...

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