Indonesia's Bakrie says to buy back Bumi shares

JAKARTA -
Indonesia's PT Bakrie & Brothers Tbk (BNBR.JK) plans to buy back shares in coal miner PT Bumi Resources (BUMI.JK) and property firm PT Bakrieland Development Tbk (ELTY.JK), a director said on Thursday.


The diversified group, whose interests range from plantations to telecoms and coal, struck a number of deals, including sale stakes, late last year to help repay around $1.2 billion in debt.


The politically connected group, controlled by the family of Indonesia's chief welfare minister Aburizal Barkie, has said its debts have been halved to the equivalent of $627 million. [ID:nJAK414315]


Asked about a report that the firm planned to spend $150 million on buying back shares in Bumi and Bakrieland, Bakrie & Brothers' Finance Director Yuanita Rohali said the firm had an option to buy back shares in the fourth quarter.


"We have the intention to exercise the options on their exercise date in the fourth quarter," Rohali told Reuters via email, adding it planned to buy around a 6.4 percent stake in Bakrieland and around a 4.2 percent stake in Bumi.


"We're still reviewing alternatives for the source of funds," Rohali said.

Shares of Bakrie & Brothers gained 3.3 percent on Thursday to close at 94 rupiah, while Bumi shares fell 1.1 percent to 2,225 rupiah and Bakrieland Development fell 3 percent to 315 rupiah.

The Jakarta Composite Index .JKSE fell 0.91 percent. From Reuters, 11th June 2009