BUMI Comments on Reports It May Acquire INDY-Owned Kideco Mine

Jakarta, CNBC Indonesia – PT Bumi Resources Tbk (BUMI) has provided an explanation to the Indonesia Stock Exchange (IDX) regarding reports that it is the leading candidate to acquire Kideco, a coal-mining company owned by PT Indika Energy Tbk (INDY).

In its disclosure, BUMI’s management explained that an IDX Channel report had cited an article published by DealStreetAsia on the same day. The article described BUMI as the “likely front-runner”, based on information from an unnamed source.

“Given that the report was based on an unnamed source, the Company cannot verify the source or the basis for the information,” BUMI’s management said in its disclosure.

The company also said DealStreetAsia had sought its response before the article was published. At the time, BUMI said it could not comment on market rumours, speculation or hypothetical transactions. Any material corporate developments would be disclosed in accordance with the applicable disclosure requirements.

BUMI said this response was consistent with good corporate governance and disclosure practices that support an orderly, fair and efficient capital market.

Diversification beyond thermal coal

In its explanation, BUMI also reiterated that it had repeatedly set out its strategic direction: diversifying its business beyond thermal coal.

Management stressed that the asset referred to in the reports is a thermal coal asset. However, the company did not explicitly confirm or deny the acquisition reports.

“If there is any material information or fact, the Company will disclose it in accordance with the applicable regulations,” management said.

BUMI also stated that, as of the date of its letter, there was no material information or significant event that could affect the continuity of its business or its share price.