EMP?s plan to spin off Lapindo might be canceled

JSX-listed oil and gas company PT Energi Mega Persada?s (EMP) plan to spin off its troubled unit Lapindo Brantas Inc. might be cancelled after it failed to secure approval from the Capital Market Supervisory Agency's Financial Statement Affairs Division(Bapepam-LK ) as of Thursday evening.

Actually, the EMP?s spin-off plan must first get the approval from Bapepam-LK before discussing it at the company?s shareholders extraordinary meeting, scheduled to be held today.

? We still need some important documents from the company (EMP). Who knows, if they submit all the documents, we can recheck it," Bapepam-LK?s head Fuad Rahmany told Bisnis Indonesia in Jakarta on Thursday night.

But Fuad refused to disclose the required documents that EMP should submit.

Meanwhile, a source at the Bapepam told the daily that the agency is currently studying the plan to separate Lapindo Brantas from PT Energi Mega in detail.

?As long as Bapepam has not given its response, the plan can?t be realized eventhough the company holds shareholders? meeting today,? the source said.

On September, EMP intended to sell its stake in Kalila Energy Limited and Pan Asia Enterprise Limited, which together own 99.99 percent of Lapindo to Lyte Ltd, a subsidiary of Bakrie Group Company at a price of just US$2.

When asked about the absence of Bapepam?s approval for the spin-off plan, several EMP?s executives refused to comment on the issue.(*)