Bumi clarifies merger rumor with EMP

The management of publicly listed Bumi Resources has acknowledged that the company was studying a merger plan with its affiliated company PT Energi Mega Persada (EMP), the head of the listing division of the Jakarta Stock Exchange (JSX), Yose Rizal, said as reported by Investor Daily Friday.

"Based on the information provided by the company, Bumi Resources has a plan to merge with EMP. But it is still under a feasibility study," Yose said, adding that the management of EMP had also provided a similar explanation with the JSX.

The share trading of Bumi Resources and EMP on the JSX was suspended on Thursday due to a circulating rumor that the two companies, both controlled by the Bakrie family, would be merged as part of the business consolidation of the Bakrie Group.

Yose said that the suspension would not be lifted until the two companies provided more concrete information about the merger rumor. Meanwhile, the vice president Capital Market of EMP, Herwin W. Hidayat denied the merger rumor. "We would soon clarify the merger rumor with the JSX," he added. (*)