Bumi required to pay $40 million deposit to take over KPC

Publicly listed company Bumi Resources is required to pay the initial payment of US$ 40 million in deposit to purchase the entire shares of KPC, Bumi said in its statement to the Jakarta Stock Exchange on Tuesday.

Last week, KPC's s shareholders, Rio Tinto and BP Plc, signed with Bumi an agreement to sell all their shares in KPC to Bumi for US$500 million. Meanwhile, JSX said that, under its regulation, Bumi must soon submit to it a report about the chronology of its plan to acquire KPC and whether or not the plan had been materialized.

?We cannot give any further information on our sales and purchase agreement until we have fulfilled our commitment to pay the initial payment,? Bumi said in its statement.

Bumi said it would find foreign creditors to finance all payments for KPC shares, including the initial payment. ?The agreement is expected to be completed on October 10 this year,? said Bumi.

In response to Bumi?s statement, JSX said it would delay requesting any further information until Bumi has made a progress regarding the acquisition. (robert)