Mining investment company Vallar plc Tuesday said it intends to buy a 25% stake in Bumi and 75% stake in Berau for a combined consideration of about US$3 billion, in a cash and new Vallar shares deal. As part of the transaction, Vallar will be renamed to Bumi plc.
Bumi is an Indonesia-based natural resources group, focusing primarily on the coal mining business. Berau Coal Energy is a holding company that indirectly owns 90% of PT Berau Coal, the coal producer in Indonesia.
The proposed acquisition is expected to complete on or around April 8, 2011.