Berau to seize Rosan?s assets in Europe

IDX-listed coal mining firm PT Berau Coal Energy Tbk has started a legal process to acquire the assets of Rosan Roeslani in Europe as conflict between the company and its former president director intensified.

Berau said in a filing with the Indonesia Stock Exchange on Monday that it was seeking to seize Rosan?s ownership in two France-based firms Chateau de Bonaban SAS and Chateau de la Grenerie SAS.

Rosan owns the two companies indirectly via a Luxembourg-based holding company RCapital Holding, which is the ultimate beneficial owner of the French firms, which are estimated to have combined assets worth about 15 million euros.

Berau said that it has received an attachment order over the shares owned by RCapital in the two French firms. The company also said that it was still seeking other measures to recover losses due to alleged financial irregularities committed at the company during Rosan?s tenure.

London-listed Asia Resource Minerals (ARMS), the controlling owner of Berau has found financial losses of US$201 million due to alleged financial irregularities at Berau. ARMS, then known as Bumi Plc, held Rosan to be responsible for the financial irregularities resulting from a number of projects made by Berau.

ARMS, for instance, questioned the cost in acquiring 1,000 ha of land in Tanjung Redeb, East Kalimantan, owned by a company called PT Borneo Prapatan Lestari (BPL). Rosan said that since 2004, Berau had faced difficulties in mining the concession as it has been occupied by villagers. The concession is estimated to have coal reserves of 50 million tons.

As part of a strategy to be able to enter into the concession, Berau at the time split the ownership of the concession into three owners including Purna Bakti Praja Foundation (Berau regency administration), Karya Bakti Berau Foundation (Berau employees), and local community represented by PT Yahoodata Mediatama.

ARMS, however, questioned the land acquisition strategy, demanding Rosan to return losses from the financial irregularities worth $173 million, down from an earlier estimate of $201 million.

Responding to the accusation, Rosan in a text message to Kontan daily said that the company?s board of director had reported the strategy to the general shareholders meeting at the time, which also issued acquit de charge for the board.

Editing by Reiner Simanjuntak