Bumi, EMP delay merger deal

PT Bumi Resources and PT Energi Mega Persada (EMP), both controlled by the family of coordinating minister for social welfare Aburizal Bakrie, have delayed the approval of their merger plan because Bumi had failed to complete the transaction of the sales of the company's shares in its three mining firms on schedule, Koran Tempo reported.

Bumi Resources had initially planned to hold an extra-ordinary shareholders meeting on July 28 to approve the divestment. But the meeting could not be carried out because the legal documents of the divestment had not yet been completed.

Bumi's corporate Secretary Geroad P Jusuf said that the company would instead hold the extra-ordinary shareholders meeting on Sept. 19, hoping that the legal documents which would be needed for the merger could be completed before the meeting.

The company earlier reported that the merger which would be carried out through a share acquisition would create a new company with total market capitalization of about Rp 30 trillion.

Bumi Resources had agreed to divest its entire stake in PT Kaltim Prima Coal (KPC), Arutmin Indonesia and Indocoal Resources to a consortium of Borneo Lumbung Energy for US$3.2 billion. (*)