Sumatra Copper not subject to UK City Code

By Peni Pedriawan

ASX-listed Sumatra Copper & Gold plc said that it has received confirmation from the UK Panel on Takeovers and Mergers that the company is not subject to UK City Code on Takeovers and Mergers.

Sumatra Copper registered office in the United Kingdom but not listed in the UK.

The City Code will normally only apply if the company is considered by the Panel to have its place of central management and control in the United Kingdom, the Channel Islands or the Isle of Man (commonly referred to as the "Residency Test").

In its Prospectus dated December 2009, the company stated that it was subject to the City Code as, at the time, Sumatra's Managing Director and two of the three Non-Executive Directors were resident in the UK. However, in early 2012, Julian Ford was appointed Managing Director and in the period since the listing of Sumatra on the Australian Securities Exchange, both UK resident Non-Executive Directors of the Company have resigned.

Sumatra approached the Panel regarding the application of the City Code because in December 2012, a major investor registered a substantial shareholder notice of 26% in Sumatra.

The City Code includes, amongst other rules, mandatory offer obligations on any person comes to hold an interest in shares carrying 30% or more of the voting rights in a company that is subject to the City Code.

Editing by Adianto P. Simamora