JSX suspends trading in Bumi Resources<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Jakarta Stock Exchange said on Tuesday that it had
\nsuspended trading in PT Bumi Resources' shares, pending
\nclarification of the company's acquisition of PT Kaltim Prima
\nCoal (KPC).<\/p>\n
"The company hasn't fully explained terms and conditions,
\nwhich have to be met by all parties who signed the sales and
\npurchase agreement," the bourse said in a statement.<\/p>\n
It further said the suspension aimed to prevent possible leaks
\nof misleading information in regards to the sale, which could
\nimproperly affect the trading of Bumi's shares.<\/p>\n
Bumi's share price rose 100 percent from Rp 40 (0.4 U.S.
\ncents) on July 18 to Rp 80 on July 25. The share price was last
\ntraded at Rp 75 on Monday.<\/p>\n
Bumi will acquire the entire stake in KPC from Anglo
\nAustralian mining giant Rio Tinto and Anglo American energy giant
\nBP PLC for US$500 million in a deal that surprised many parties
\nin the country, including top officials in the central government
\nand East Kalimantan government.<\/p>\n
The acquisition plan, which was jointly announced by BP and
\nRio Tinto last Monday, came as the State Ministry of State
\nEnterprises was brokering a deal allowing three state-owned firms
\nto buy a 51 percent stake in the coal company.<\/p>\n
The acquisition plan has also become controversial because the
\nprice paid by Bumi for the stake was much lower than the one
\npreviously agreed by KPC's shareholders and the central
\ngovernment, that is $822 million for the entire stake.<\/p>\n
The government is planning to launch an investigation into the
\ndeal, while the East Kalimantan province is planning to sue all
\nparties involved in the deal.<\/p>\n
In its letter to the Capital Market Supervisory Agency
\n(Bapepam) on Tuesday, Bumi's director Eddie J. Soebari said that
\nthe company could not unveil the terms and conditions of the deal
\ndue to a confidentiality agreement.<\/p>\n
"Terms and conditions of the sales and purchase agreement
\ncan't be unveiled due to the confidentiality agreement until the
\nfirm (Bumi) makes a deposit payment amounting to $40 million,"
\nEddie said.<\/p>\n
According to him, the sales and purchase agreement, which was
\nsigned on July 16, should be realized by Oct. 10.<\/p>\n
Bumi will acquire KPC by buying out overseas-registered
\nSangatta Holding Limited and Kalimantan Coal Limited, which hold
\na 50 percent stake in KPC. Sangatta Holding is wholly owned by
\nRio Tinto's Pacific Resources Investment Limited, while
\nKalimantan Coal is entirely owned by BP International Limited.<\/p>",
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"sponsor": "Okusi Associates",
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