PT Borneo Lumbung Energy and Metal Tbk (BORN) and Bakrie Group (PT Bakrie & Brothers Tbk and Long Haul Holdings) will be separated from the joint venture in Bumi Plc.

PT Borneo Lumbung Energy and Metal Tbk (BORN) and Bakrie Group (PT Bakrie & Brothers Tbk and Long Haul Holdings) will be separated from the joint venture in Bumi Plc.



This week, PT Borneo Lumbung Energy and Metal Tbk (BORN) and Bakrie Group (PT Bakrie & Brothers Tbk and Long Haul Holdings) will be separated from the joint venture in Bumi Plc. Now, both were complete separation of property gono-gini be a 47.6 percent stake in Bumi plc.

BORN and Bakrie Group has teamed up 47.6 percent stake in Bumi Plc through two special purpose vehicle (SPV). Two SPV named Borneo Earth Energy & Metal Pte Ltd and Earth Borneo Resources Pte Ltd.

BORN separation process and the Bakrie Group has actually been designed since October 2012. However, these efforts had been halted due to the London Stock Exchange Authority panel traced the alleged linkage (concerted party) between the Bakrie Group and BORN.

On December 19, 2012, the Panel has completed its investigation London Stock Exchange. "So now we're allowed to sign separation agreement," said Samin Tan, owner BORN to KONTAN, Friday (21/12/2012).

So how separation scheme? Samin Tan explains, there are three options put forward.

The first option, the two SPV will be dissolved and its assets were divided equally. The second option, Borneo and Bakrie each holding a SPV. Each SPV controlled 23.8 percent stake in Bumi Plc. A third option, Borneo sells stake in two SPV's, and will repurchase (buyback).

Which option to choose? Christopher Fong, a spokesman for the Bakrie Group said that until now there has been no decision between the two. Samin Tan is also simply stated, "Bakrie Group has a spirit lest we lose".

Merely flashed back, because disputes Bakrie and Nathaniel Rothschild, the Bakrie Group finally decided to get out of Bumi Plc, by submitting a proposal out of Bumi Plc. One of the proposal is swap 23.8 percent of his shares in Bumi Plc to 10.3 percent stake in PT Bumi Resources Tbk (Bumi) owned by Bumi Plc.

Therefore, divorce Borneo and Bakrie Group appears crucial for the implementation of the proposal. For, if the partnership is dissolved, each will get a 23.8 percent stake in Bumi Plc (47.6 percent divided by two). Shares that is what will be the share swap and the Bumi Plc shares EARTH.

Head of Research Securities Trust Reza Priyambada said investment losses Borneo in Bumi Plc can be minimized if the Bakrie Group provides compensation to Borneo. Because, Borneo Bumi Plc entered when the price 10 pounds per share, while the price of Bumi Plc is currently in the range of 2.6 pounds per share. "Much of their initial investment," said Reza