tata-power-pays-13-billion-for-a-stake-in-bumi-coal

Tata Power pays $1.3 billion for a stake in Bumi coal

Bumi Resources announces the sale of a 30% stake in its coal companies to Tata Power.
April 01, 2007
India's Tata Power announced on Saturday March 30 that it plans to buy a 30% stake in Indonesian energy giant PT Bumi Resources' premiere coal mines for approximately $1.3 billion.

The Bumi mines include PT Kaltim Prima Coal KPC, PT Arutmin Indonesia Arutmin and related companies - mines it tried to sell stakes in last year - but says now that the sale will close subsequent to customary formal approvals for both the parties. Tata, after all, needs to secure coal supplies for its upcoming power plants. The estimated sale price includes the base price of $1.1 billion, as well as closing and working capital adjustments.

Tata Power is being advised by Macquarie, while...
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