Bumi agrees to revise FBS acquisition price
Thursday, June 18 2009 - 02:06 AM WIB
The move to revise the acquisition price came following a meeting between officials of Bumi and Bapepam, the Indonesian capital market watchdog.
Based on the calculation made by the association of the Indonesian appraisers (MAPPI), the FBS acquisition was overpaid by Rp 370 billion (1 US$=Rp.10, 200), Bepepam has said.
Bumi has agreed to acquire 77 percent indirect stake in FBS early this year for Rp 2.4 trillion which would be paid in stages within two years. FBS would produce 2.3 million tonnes of coal in 2009, with planning to ramp up production to 7 million in 2012.
Bumi president director Ari Hudayat said in Jakarta on Wednesday that the company had agreed with MAPPI?s request to lower the acquisition price of FBS, and that the company?s representative would soon depart for Abu Dhabi to renegotiate the price change with former shareholders of FBS.
He, however, said that he was not sure if the former shareholder of FBS would agree to cut down the price of FBS. ?If the seller does not agree (with the propopsed price revision), then the transaction will be cancelled," he said.
Bapepam launched an investigation in February over Bumi?s acquisition deals worth Rp 6.18 trillion (US$525.3 million), involving the purchase of three local mining companies ? Dharma Henwa, Pendopo Energi Batubara, and FBS.
Bapepam chairman Fuad A Rahmany said that based on its investigation, the transactions of Darma Henwa and Pendopo Energi Batubara were considered fair in terms of acquisition price. But with regard to the transaction of FBS, Bumi should make some changes.
Fuad suggested two alternatives for Bumi to settle the problem; the first is to seek approval of independent shareholders and the second is to make a price adjustment in accordance with the calculation of MAPPI.
If Bumi chose one of the alternatives, the capital market watchdog would approve the deal and would stop the probe over the transaction, he said. (*)