China Investment Corporation (CIC), Chinese fund management company, is scheduled to hold a frenzy meeting in Jakarta tomorrow to determine next projects at companies under Bakrie Group should be developed.
A source familiar with the matter said CIC and Bumi will discuss about non-preemptive rights of 10% shares following loan agreement of US$1.9 billion.
"The meeting won't discuss only Bumi non-preemptive rights. CIC is looking an investment opportunity, especially in infrastructure projects," a source said. The meeting will be attended by important key executives of Bakrie Group companies.
(BUMI) and CIC are in talks for a possible debt swap. A source said the debt swap will take an opportunity of Bumi's issuing new shares without preemptive rights of maximum 10% or 1.94 billion of shares.
"Bumi will issue 1.94 billion of new shares to CIC, while it can convert the debt into the shares. Still, the biggest stumbling block is conversion price," a source said.
Bumi has mandated PT Danatama Makmur which is run by Houston Jusuf to handle such corporate action. "I hear that Bumi and CIC seem agreed conversion price is around Rp2,700-Rp2,800 per share."
