Bumi-EMP merger plan delayed again

PT Bumi Resources?s efforts to transform itself into an integrated energy company have suffered setback with a proposed merger with oil and gas firm PT Energi Mega Persada (EMP) being delayed once again

Bumi finance director Eddie Soebari said Wednesday an extraordinary shareholders meeting scheduled for Sept. 19 to approve the proposed merger had been postponed again until November.

He said the delay was necessary to carry out further evaluations of Bumi?s assets following the cancellation of its divestment of coal companies PT Kaltim Prima Coal, PT Arutmin Indonesia and PT Indocoal to a local consortium led by Borneo Lumbung Energi.

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.

?The reevaluation can be completed in one month?s time. Therefore, the shareholders meeting will be held sometime between November and December,? Eddie said.

EMP is also reevaluating its assets following the mudflow disaster at a gas exploration well operated by its subsidiary company PT Lapindo Brantas in Sidoarjo, East Java.

?The reevaluation of our assets in relation to the merger is still in process. The result could either result in an increase or a drop in the company?s total asset value,? said EMP director Yuli Soedargo when asked about the effect of the Lapindo incident on the company?s total value. (denny)