September 8, 2010 / 11:08 AM / 7 years ago

Glencore invests $200 mln in Bumi stake - shareholder

JAKARTA, Sept 8 (Reuters) - Commodity trading giant Glencore [GLEN.UL] has bought a $200 million stake in Indonesia’s biggest coal miner PT Bumi Resources (BUMI.JK), the miner’s biggest shareholder said on Wednesday.

PT Bakrie and Brothers (BNBR.JK), controlled by the Bakrie family and Bumi’s biggest single shareholder with a 19.3 percent stake, said in its first half financial statement on Tuesday it had signed a share swap deal with Glencore on June 26.

Eddy Soeparno, Bakrie’s financial director, told Reuters Glencore had already bought $200 million worth of Bumi stock since June.

“We have an option to buy back the stake from Glencore within two years,” Soeparno said.

Dileep Srivastava, a director at Bumi, also confirmed Glencore had already bought into the firm in June, but declined to give the size of the stake.

According to Reuters calculations, and based on Bumi's average closing share price and the rupiah IDR= exchange rate between June 28 to June 30, the deal may mean Glencore owns about a 4.95 percent stake in Bumi.

Soeparno said Glencore -- a marketing agent for Bumi coal -- saw Bumi shares appreciating in the future.

Glencore was not immediately available for comment.

A source at Bakrie and Brothers who declined to be identified said the investment holding firm did not have enough cash to increase its stake in Bumi at the moment, but also saw potential upside for the miner’s shares.

Bumi's stock has tumbled 29 percent so far this year, underperforming a Jakarta market .JKSE up 27 percent, because of concerns about corporate governance and high debt. Its forward PE ratio is 6.15, versus 10.36 for rival Adaro Energy (ADRO.JK).

Privately held Glencore, the world’s biggest commodities trader, has become a global marketing agent outside Japan for PT Kaltim Prima Coal, Bumi’s main coal mining unit.

Indonesia is the world’s largest exporter of thermal coal, which is seeing growing demand from regional power stations. (Reporting by Janeman Latul, Editing by Neil Chatterjee)

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