Bumi transfers 19% stake to CIC

Indonesian coal miner PT Bumi Resources Tbk has transferred a 19 percent stake worth $950 million in its unit, Kaltim Prima Coal, to China Investment Corp (CIC) as part of its debt repayment to the sovereign wealth fund.

With the transfer of the stake, Bumi's debt to CIC was cut to $1.04 billion, the company said in an e-mailed statement on Thursday. In October 2013, CIC agreed to convert part of Bumi's debt into stakes in the miner and associated subsidiaries.

Bumi expects to transfer a 42 percent stake valued at $257 million in another unit, PT Bumi Resources Minerals Tbk , as well as $150 million in its own equity to CIC by September.

On Monday, Bumi shareholders approved its plan to raise 8.05 trillion rupiah ($675 million) through a rights issue.