<article><a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Bumi+Resources" target="_blank" rel="noopener noreferrer">Bumi Resources</a>, an Indonesian mining company backed by <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=china+investment+corporation" target="_blank" rel="noopener noreferrer">China Investment Corporation (CIC)</a>, has completed the much-awaited $2.6 billion (Rp 35 trillion) rights issue that will now save the company from a total collapse.</article>

<a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Bumi+Resources" target="_blank" rel="noopener noreferrer">Bumi Resources</a>, an Indonesian mining company backed by <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=china+investment+corporation" target="_blank" rel="noopener noreferrer">China Investment Corporation (CIC)</a>, has completed the much-awaited $2.6 billion (Rp 35 trillion) rights issue that will now save the company from a total collapse.
The company’s debt notes and liabilities &#8211; totaling $4.2 billion &#8211; had been declared defaults several times since 2014, attracting several legal suits. Bumi’s shares had plunged to Rp 50 (less than US$0.01) apiece and stayed there until last year, when it announced that it finally secured the approvals for the rights issue, the one corporate action that the company believed would save it.
The deal saw Bumi selling 28.7 billion shares at Rp 926 ($0.07) apiece as well as 8.5 trillion units of convertible bonds at Rp 1 each.
“The (rights issue) has been fully subscribed by shareholders and standby buyers. It would result in reduction of present debt from $ 4.2 billion by 61 per cent to $1.6 billion,” corporate secretary Dileep Srivastava said in a statement.
CIC, who was owed $606.8 million, absorbed 8.6 billion shares or 22.9 per cent of the enlarged capital. Meanwhile, bondholders of 2016 senior notes and 2017 senior notes got 8 per cent and 18.4 per cent, respectively. Creditors in CS facility 1 received 3.5 per cent, UBS 1.4 per cent, <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Axis+Bank" target="_blank" rel="noopener noreferrer">Axis Bank</a> and <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Deutsche+Bank" target="_blank" rel="noopener noreferrer">Deutsche Bank</a> each 1.3 per cent. In total, bank creditors and notes holders took over 68.4 per cent of Bumi Resources, while mandatory convertible bonds holders controlled 24.1 per cent.
Wayne Yao and Haiyong Yu from CIC now sit on its board, alongside Ruan Xuefeng from CDB. The company also adds five new commissioners, including two from CIC, Jinping Ma and Benjamin Bao, and one from the company’s bondholders, Thomas M. Kearney.
Bumi reported a 230 per cent increase in consolidated net income to $134.3 million for the first quarter of this year, from $40.6 million in the same quarter last year. Meanwhile, net income after non-controlling interest increases fourfold to $88 million from $22.8 million from the first quarter of 2016.
CIC made headlines last month when it snapped up European warehouse firm Logicor from American private equity firm Blackstone for $13.8 billion. The sale, the biggest private equity real estate deal in Europe on record, scuppered plans that were being worked on for a London initial public offering of Logicor later this year.
CIC was founded in 2007 as a wholly state-owned company to help China help a higher return on its foreign exchange reserves. It now manages about $800 billion in assets, including $200 billion of overseas investments.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/indonesia-bumi-resources-finalises-newmont-share-sale-39760/" target="_blank" rel="noopener noreferrer">Indonesia: Bumi Resources finalises Newmont share sale</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/indonesia-bumi-resources-sells-unit-leap-forward-for-90-million-52061/" target="_blank" rel="noopener noreferrer">Indonesian coal producer Bumi Resources sells unit Leap Forward for $90m</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/indonesia-benakat-integra-to-close-mitratama-takeover-this-year-63488/" target="_blank" rel="noopener noreferrer">Indonesia: Benakat Integra to close Mitratama takeover this year</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-life-cic-consortium-interpark-deal-76738/" target="_blank" rel="noopener noreferrer">China’s CIC snaps up Logicor from Blackstone for $14b in Europe’s biggest PE realty deal</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-32303/" target="_blank" rel="noopener noreferrer">China’s sovereign fund CIC reshuffles team, plans strategic shift</a>

CIC-backed Indonesian miner Bumi completes $2.6b rights issue, saved from collapse

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

CIC-backed Indonesian miner Bumi completes $2.6b rights issue, saved from collapse

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief