Bumi's suspension will be lifted only after full disclosure
Tuesday, August 12 2003 - 03:40 AM WIB
Bapepam's chairman Herwidayatmo said in Jakarta on Monday that the suspension of Bumi shares trading on the Jakarta Stock Exchange (JSX) would be lifted only after the company made a substantial disclosure of the takeover.
Herwidayatmo said that the disclosure should be made on several important points, including the purchase agreement of KPC shares, the relationship between Bumi and Rio Tinto and BP Plc as the sellers of the shares.
Bumi should also explain in details about its commitment to selling 51 percent of KPC shares as part of the mandatory divestment program imposed on the previous shareholders, he said.
Herwidayatmo also said that Bumi should also disclose to the public about the price of the takeover, how the company would finance the takeover and how the company would raise funds to pay upfront payment of about US$40 million for the KPC shares.
According to Bapepam, the disclosure should be made through at least two local newspapers to ensure that the explanation would reach a large audience in the public.
Bumi made a surprise move last month when it announced it had reached an agreement to take over 100 percent of KPC shares from existing shareholders Rio Tinto and BP. Bumi takes over the coal producer for US$500 million in a deal which will be completed in October.
The deal has caused wide controversies in the public not only because the deal was made because the existing shareholders were still in the process of selling their 51 percent stake to government's nominees as part of the mandatory divestment program but also due to the fact that the price of KPC's 100 percent shares was just slightly above the US$400 million placed on the 51 percent shares to be sold under the divestment program. (*)