Bumi-EMP merger likely in early 2007
Saturday, October 28 2006 - 02:25 AM WIB
EMP still face a problem with its plan to divest its subsidiary Lapindo Brantas Inc. because the Capital Market Supervisory Agency (Bapepam) has yet to complete its study on the divestment proposal.
Earlier, the meeting was scheduled to be held in October 20 but was canceled because Bapepam asked for more documents and wanted to study them further. According to EMP?s investor relations officer Herwin Hidayat, the meeting failed to be held because it did not have a quorum.
?We have already submitted all documents that Bapepam asked. At present, Bapepam is still studying the documents. If Bapepam calls us again, we are ready for it,? Herwin said in Jakarta on Friday.
Herwin is optimistic that the shareholders? meeting will be held on November 6.
?Currently, we are really concentrating on selling Lapindo?s shares. Upon completion, we will start to think about the merger with Bumi,? Herwin said.
On September, EMP intended to sell its stake in Kalila Energy Limited and Pan Asia Enterprise Limited, which together own 99.99 percent of Lapindo, to Lyte Ltd, a subsidiary of Bakrie Group Company, at a price of just US$2.
Meanwhile, Bumi Resources finance director Eddie J Sobari said that Bumi?s plan for an extraordinary shareholders meeting was on December 24 with merger issue as the main agenda, but the planned meeting could possibly be delayed due to the cancellation of EMP?s shareholders meeting on Oct. 20 with the agenda of Lapindo?s spin off.
The company initially planned to hold the shareholders meeting July 28 but pushed that back to Sept. 19 due to delays in the closing of the proposed US$3.2 billion divestment deal.
"From Bumi's side, the company is ready for the merger but we have to wait for the solution to (EMP's) problem of divesting Lapindo," Eddie said.(*)