Bumi?s recent takeover deals need shareholders? approval
Wednesday, February 11 2009 - 02:38 AM WIB
In its written statement distributed to members of the Commission XI of the House of Representatives (DPR) during a hearing on Tuesday, Bapepam said that the initial result of its investigation indicated that Bumi?s takeovers of the three companies could be considered material or of significant importance.
As the consequence, Bumi should have first held an extra-ordinary shareholders meeting to win the shareholders? approval before the company concluded the takeover transactions, the statement said.
Bumi, the country?s largest coal producer, which is controlled by the family of Coordinating Minister for Social Welfare Aburizal Bakrie, recently took over three coal mining firms; PT Dharma Henwa, PT Fajar Bumi Sakti, PT Pendopo Energi Batubara.
The costly transactions have been under the public scrutiny not only due to the high prices Bumi had to pay but also due to the fact that they were conducted without a long process of a due diligence as normally carried out in similar business transactions.
Many analysts suspected that the three companies were also owned by the Bakrie family but such allegations were denied.
The takeover deals had been included in the agenda to be discussed during the hearing, but some members of the House commission asked Bapepam to drop the issue from the hearing agenda.
In the written statement, Bapepam said that as the value of the takeover transactions exceeded 10 percent of Bumi?s revenues and was above 20 percent of the company?s total equity, they were considered ?material? and as the consequence, they should have first won shareholders approval .
When confirmed after the hearing, Bapepam chairman Fuad Rahmany said that the final result of the investigation had not been made. ?Give us time to further investigate the case before making a final decision,? he said. (*)