Desy Nurhayati and Ika Krismantari, Jakarta – With a trio of state firms exploring the possibility of buying a stake in the Bakrie group's PT Bumi Resources, the government has rejected claims the plan is meant as a helping hand for the Bakrie family's most prized company.
State miners PT Tambang Batubara Bukit Asam (PTBA), PT Aneka Tambang (Antam) and PT Timah are in talks to seek a way of acquiring up to 35 percent of Bumi, Asia's largest coal exporter, estimated at Rp 14 trillion (US$1.45 billion). The firms have also been encouraged by State Minister for State Enterprises Sofyan A. Djalil to team up with private companies.
On Friday, however, State Secretary Hatta Radjasa refuted suggestions the move by the three state miners was a government-backed rescue deal for the Bakrie family, insisting any deal between the state miners and Bumi would be under the business-to-business framework.
"No, there's no such bailout. A bailout refers to funds from the state budget. That has nothing to do with this issue," Hatta told reporters at the Presidential Palace.
"If the state firms want to buy (Bumi shares), it's a business-to-business transaction. They have their own system," he said, adding the government would leave the matter to Bakrie and would only participate by providing the legal framework.
The government's denial comes as Bumi's parent company, PT Bakrie & Brothers – controlled by the family of welfare minister Aburizal Bakrie – sells some of its assets to raise up to $1.2 billion to repay debts backed by stakes in its units.
The payment acceleration is aimed at limiting a dilution, with the value of the companies' shares nosediving during last week's stock market rout.
In addition to the three state miners, other state firms have been encouraged to buy back shares to shore up confidence in the market, which last week was dragged down in part by the slumping shares of the Bakrie companies amid speculation the group would default on its debts.
Bakrie & Brothers has denied the speculations and has since held talks with various investors to raise the $1.2 billion. It has so far completed the first phase of the offering.
Avenue Luxembourg SARL has taken another 15 percent stake worth $46 million in PT Bakrieland Development, and Longines Offshore Co. Ltd., through the Royal Bank of Scotland, has purchased a 5.6 percent stake worth $10 million in PT Bakrie Sumatra Plantation.
Negotiations to sell PT Bakrie Telecom and Bumi are still underway, the group added.
Following the announcement, trading in shares of the three companies resumed on Friday, but a sell-off hit them right away.
Bakrieland Development dropped 10 percent, from Rp 15 to Rp 135, while Bakrie Sumatera Plantations, a palm oil producer, tumbled 9.8 percent to Rp 415, and PT Bakrie Telecom plunged 9.7 percent to Rp 167.
These three are among six Bakrie companies whose shares had been suspended from trading since Oct. 7.
IDX president director Erry Firmansyah said the three firms had submitted all the information needed to resume trading, particularly on the ongoing restructuring process.