Vallar Completes Acquiring 75% Berau, Recapital Says

Vallar Plc, Nathaniel Rothschild’s investment vehicle, completed acquiring a 75 percent stake in Indonesia’s PT Berau Coal Energy from PT Bukit Mutiara today, Recapital Group said.

The transfer was completed at 10:40 a.m. Jakarta time, Thomas Warren Shreve, chief executive officer of Recapital, the parent of Bukit Mutiara, said in an e-mailed response to Bloomberg News. Shreve is also a director at Berau Coal.

Vallar agreed in November to invest $3 billion in PT Bumi Resources and Berau Coal in a stock and cash transaction to tap access to an emerging market in Indonesia, the world’s largest thermal-coal exporter, amid surging demand for the fuel from China and India. Vallar will be renamed Bumi Plc after the completion of the deals.

“The acquisition has brought together significant holdings in Indonesia’s largest and fifth-largest coal producers to create a London-listed Indonesian coal champion,” Rothschild, co-chairman of Vallar, wrote today in an e-mailed statement to Bloomberg. “Both Bumi and Berau have strong organic growth profiles, with operations and projects that are perfectly positioned to take full advantage of the current high demand for coal from the fast growing markets of Asia.”

Vallar planned to buy 26.2 billion shares of Berau Coal at 540 rupiah each or for a total of 14.1 trillion rupiah ($1.63 billion), Recapital, which helped sell the stake, said in a statement to the stock exchange April 6.

Vallar completed the acquisition of a 25 percent stake in Bumi last month. Bakrie Group, the owner of Bumi, and Bukit Mutiara, received shares in Vallar as part of the transactions.

Bumi Stake

After the purchases, Bakrie Group will own about 54.6 percent of Vallar and Bukit Mutiara will have about 13.2 percent in the Jersey, Channel Islands-based company, Vallar said in a statement March 4.

PT Bakrie & Brothers rose 1.5 percent to 66 rupiah at the 4 p.m. close in Jakarta trading. Berau Coal was unchanged at 560 rupiah.

Vallar plans to increase its stake in Bumi to as much as 50 percent in the near term and expects to complete the transaction in the second quarter, Rothschild said by e-mail.

“There is no firm deadline for the plan, rather it is an ongoing process that we do expect to take place during the course of April,” Rothschild said. Bumi fell 0.8 percent to 3,250 rupiah apiece.

Vallar may raise its stake in Bumi this year to 51 percent, the Financial Times reported yesterday, citing Andrew Beckham, chief financial officer of both Vallar and Bumi.

Rothschild was most recently co-chairman of New York-based hedge-fund firm Atticus Capital LLC and the only son of British financier Lord Jacob Rothschild. Vallar raised 707.2 million pounds ($1.2 billion) in an initial public offering on the London Stock Exchange in July.

(Corrects Rothschild’s position at Atticus Capital in last paragraph of story first published on April 8.)
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