BORN answers false media claim on 99% AKT ownership
Tuesday, January 22 2013 - 04:55 AM WIB
IDX-listed coking coal producer PT Borneo Lumbung Energi & Metal Tbk (BORN) recently posted a response in a statement released at the exchange regarding recent media report, saying that it may have been a victim of a false claim.
The report, released by an online media based in Singapore on January 21, 2013, stated that the Singapore International Arbitration Centre (SIAC) has issued an interim judgment rejecting evidence presented by BORN, and has ruled that BORN has not paid the remaining payment consideration in the amount of US$10,000,000 for the acquisition of 99.99% share ownership in PT Asmin Koalindo Tuhup (AKT). The media article also suggests that this may potentially lead to the SIAC nullifying the original acquisition transaction.
This refers to the Arbitration case at the SIAC No. ARB001/12/FL that refers to a claim by TransAsia Minerals Limited and Bondline Ltd against BORN for payment of an amount of US$10,000,000 regarding the acquisition of AKT.
BORN said that it did not know whether or not the claim has been concluded or decided.
"We understand from relevant documents sent to us by the SIAC and TransAsia that a pre-hearing was due to be held by the SIAC on January 14 to 16, 2013, at Maxwell Chambers, 3 Temasek Ave #16-01 Centennial Tower Singapore 039190. To the best of our knowledge, the case has not been decided and (we) have not received any formal notice from either the SIAC or TransAsia to this effect," the company said.
BORN also said that as a Respondent, it has always taken the position that the SIAC is not the forum via which any claim by TransAsia against BORN should be pursued, as the applicable law governing the transaction to which the case, if any, refers is Indonesian Law.
"In addition BORN is not a named party to the agreement pursuant to which TransAsia has been pursuing its claim. To this end, BORN has elected not to respond and address the substance of the claim being heard by the SIAC," it added.
As of December 2009, BORN stated it has fully paid the total amount for the purchase consideration of US$175,000,000 in cash to TransAsia for the acquisition of 99.99% of share ownership in AKT, adding that this makes sale and purchase duly completed, and is legal and final.
"And BORN has since become the lawful and bonafide owner of the 99.99% share ownership in AKT," it said.
"It is important to stress that the SIAC Arbitration case refers to an additional payment obligation by BORN in the amount of USD 10,000,000, which is considered immaterial in the context of BORN?s accounts. However, because of the media report referred to above, BORN shall immediately notify the SIAC again of its positions on the claim."
Editing by Er Audy Zandri