As part of the share placement plan, Bumi will issue up to 200 billion new shares, 85% of which will be acquired by MACH Energy .
Treasure Global Investments (TGIL) will subscribe to the remaining 15%.
The move is part of PT Bumi Resources ’ efforts to reduce its longstanding debt.
Reuters quoted Bumi director Dileep Srivastava as saying that the share sale plan was approved ‘almost unanimously’.
Srivastava added: “The utilisation of those proceeds is to repay in full existing debt, so the company should be as good as debt-free.”
Under the prospectus, Bumi Resources has around $1.5bn of outstanding debt following the restructuring.
The company previously underwent a court-led debt restructuring process in 2016.
Once the share sale has closed, the new investors will own a combined stake of around 58% in Bumi Resources. More than 70% of Bumi’s shares are currently owned by public shareholders.
Following the share sale, Bumi will be jointly controlled by Salim and Bakrie Group, a company led by Indonesian tycoon Aburizal Bakrie.
Srivastava said that the company can then focus on strengthening its coal business before looking into non-coal opportunities.
Bumi will continue to focus on developing a coal gasification plant, as well as assessing investment prospects in other minerals and renewable energy.
Based in Jakarta, Bumi aims to be a ‘world-class, global operator within the energy and mining sectors’.
The company’s operations are divided into two subsets, namely Coal, Oil & Gas and Minerals/Non-Coal.