Northstar Buys Bumi Stake

JAKARTA (Reuters) – Indonesia’s Bakrie & Brothers Tbk (BNBR.JK: Quote, Profile, Research, Stock Buzz) said on Saturday it has agreed to sell a 35 percent stake in coal miner Bumi Resources (BUMI.JK: Quote, Profile, Research, Stock Buzz) for $1.3 billion to investment group Northstar.

Jakarta-listed Bakrie & Brothers, a holding company with interests in energy, property and telecoms, has been struggling to raise over $1 billion to repay short-term debt.

The group is controlled by the family of Indonesia’s chief social welfare minister Aburizal Bakrie, who until recently was ranked the country’s richest man.

Northstar Pacific is run by Indonesian banker Patrick Walujo, a former Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) banker, and has a joint venture with U.S. buyout firm TPG Capital [TPG.UL]. Bakrie officials declined to say whether Northstar was the sole buyer, or leading a consortium of other firms.

Trading in the shares of Bakrie & Brothers, Bumi Resources, and Energi Mega Persada (ENRG.JK: Quote, Profile, Research, Stock Buzz) has been suspended since Oct. 7, pending a resolution of the group’s debt repayment.

Other companies in the group include Bakrie Telecom (BTEL.JK: Quote, Profile, Research, Stock Buzz), Bakrie Sumatera Plantations (UNSP.JK: Quote, Profile, Research, Stock Buzz) and property firm Bakrieland Development (ELTY.JK: Quote, Profile, Research, Stock Buzz). (Reporting by Telly Nathalia; Writing by Sara Webb; Editing by Kim Coghill)