Energi Persada defends merger report

Vice President for Capital Market of PT Energi Mega Persada, Herwin Hidayat said that the report on the company's plan to merge with the country's major coal producer PT Bumi Resources was in line with the information contained in the company's prospectus, Bisnis Indonesia reported on Monday.

He admitted that the talks on the merger plan with Bumi Resources were still at an initial stage. "But if the talks continued, then it would not be against the information contained in the prospectus which was issued during the company's recent rights issue," he was quoted as saying.

According to him, the company said in the prospectus that it would carry out its business expansion through an expansion of its exploration activities or through an acquisition.

The Jakarta Stock Exchange (JSX) said last week it would continue the suspension of the stock trading of Bumi Resources and PT Energi Mega Persada, until the market operator receives a clarification from Mega Persada about their merger plan

The JSX suspended the trading of the two companies' stocks on Thursday due to a circulating rumor that the two companies which are both controlled by the Bakrie family would be merged. (*)