Bumi updates on investigation
Thursday, December 13 2012 - 08:03 AM WIB
LSX-listed Bumi Plc announced on 24 September 2012 an independent investigation into allegations concerning potential financial and other irregularities in relation to PT Bumi Resources Tbk, in which the Company has a 29% interest.
The Company has now received a near final version of a report by Macfarlanes LLP.
In light of the report, the board is evaluating all legal and commercial options available to it and has been engaging actively with UK regulators and will continue to do so as appropriate.
"In connection with the investigation, the company has conducted a technical examination which has shown that information has been obtained illegally by email hacking. The Board also notes the statements made on behalf of the Bakrie Group about the use of illegal e-mail hacking to obtain information used in the investigation," the company said in a statement.
The company's Audit Committee has considered whether, in light of the report, any further asset write-downs will be required and believes that these are not likely to be material given the extensive write-downs already made in respect of certain development assets, which were a main focus of the Macfarlanes investigation.
Separately, and unrelated to the Report, there will be a significant (non-cash) year end accounting adjustment to reflect the impairment of the carrying value of PT Berau Coal Energy Tbk due to lower thermal coal prices and the reclassification of the Company's 29% shareholding in Bumi Resources from an associate to an investment which will be marked to market.
As previously announced, the Company has received a proposal from Long Haul. An alternative proposal has also been received from NR Investments 2.
The Board notes that the NR Proposal requires certain shareholders, PT Borneo Lumbung Tbk and Bukit Mutiara, to agree to sell their shares. These shareholders have informed the Board that they have no intention of selling on the terms of the NR Proposal.
"The Board will not be in a position finally to recommend a course of action until regulatory processes are sufficiently advanced, but is working towards a transaction which separates the Bakrie Group from the Company and divests the Company's minority interest in Bumi Resources as soon as practical," it said.
Nalin Rathod has also informed the Board of his intention to step down as Chief Executive Officer of the Company on 31 December 2012 and will serve as a non-independent, non-executive director. He will be succeeded as Chief Executive by Mr Nick von Schirnding who will join the Board on that date.
Editing by Er Audy Zandri