JAKARTA, July 3 (Reuters) - Indonesian coal miner PT Bumi Resources Tbk has transferred a 19 percent stake worth $950 million in its unit, Kaltim Prima Coal, to China Investment Corp as part of its debt repayment to the sovereign wealth fund.
With the transfer of the stake, Bumi’s debt to CIC was cut to $1.04 billion, the company said in an emailed statement on Thursday. In October last year, CIC agreed to convert part of Bumi’s debt into stakes in the miner and associated subsidiaries.
Bumi expects to transfer a 42 percent stake valued at $257 million in another unit, PT Bumi Resources Minerals Tbk , as well as $150 million in its own equity to CIC by September.
On Monday, Bumi shareholders approved its plan to raise 8.05 trillion rupiah ($675 million) through a rights issue. The stock had plunged to an 11-year-low last week due to concerns about its ability to repay debt, but it has since bounced. ($1 = 11,933.00 rupiah) (Reporting by Eveline Danubrata; Editing by Subhranshu Sahu)