Bumi Plc (BUMI) Chairman Samin Tan said he’d won funding approval to buy part of the Bakrie Group’s stake in the Indonesian coal producer, meeting a deadline in a deal set to end the battle for control of the company.
“Funding to acquire the Bakrie’s stake as part of the overall separation transaction has been approved by our funding bank,” Tan said by e-mail, without naming the bank. “The loan agreement has been drafted subject to inclusion of a couple of commercial terms which are targeted to be finalized today.”
Tan has until today to satisfy Bumi’s board that he can fund his share of a $501 million deal to sell its stake in PT Bumi Resources to the Bakries. London-traded Bumi has been at the center of a battle for control between the Bakries and fellow founder Nathaniel Rothschild, scion of a British banking dynasty. Tan has agreed to buy the Bakries’ 23.8 percent holding in Bumi for $223 million.
Shareholders will vote on the separation deal on Dec. 4.
Bumi had yet to receive proof that the Bakrie Group can finance its share of the transaction, Chief Executive Officer Nick von Schirnding said on Nov. 8.
Funds for the Bakries’ $278 million share of the offer have been available since January in the form of a “direct cash investment by the Bakrie family,” Chris Fong, a spokesman for the Bakrie Group, said in an e-mail on Nov. 8.
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