JSX suspends trading in Bumi Resources

JSX suspends trading in Bumi Resources

The Jakarta Post, Jakarta

The Jakarta Stock Exchange said on Tuesday that it had
suspended trading in PT Bumi Resources' shares, pending
clarification of the company's acquisition of PT Kaltim Prima
Coal (KPC).

"The company hasn't fully explained terms and conditions,
which have to be met by all parties who signed the sales and
purchase agreement," the bourse said in a statement.

It further said the suspension aimed to prevent possible leaks
of misleading information in regards to the sale, which could
improperly affect the trading of Bumi's shares.

Bumi's share price rose 100 percent from Rp 40 (0.4 U.S.
cents) on July 18 to Rp 80 on July 25. The share price was last
traded at Rp 75 on Monday.

Bumi will acquire the entire stake in KPC from Anglo
Australian mining giant Rio Tinto and Anglo American energy giant
BP PLC for US$500 million in a deal that surprised many parties
in the country, including top officials in the central government
and East Kalimantan government.

The acquisition plan, which was jointly announced by BP and
Rio Tinto last Monday, came as the State Ministry of State
Enterprises was brokering a deal allowing three state-owned firms
to buy a 51 percent stake in the coal company.

The acquisition plan has also become controversial because the
price paid by Bumi for the stake was much lower than the one
previously agreed by KPC's shareholders and the central
government, that is $822 million for the entire stake.

The government is planning to launch an investigation into the
deal, while the East Kalimantan province is planning to sue all
parties involved in the deal.

In its letter to the Capital Market Supervisory Agency
(Bapepam) on Tuesday, Bumi's director Eddie J. Soebari said that
the company could not unveil the terms and conditions of the deal
due to a confidentiality agreement.

"Terms and conditions of the sales and purchase agreement
can't be unveiled due to the confidentiality agreement until the
firm (Bumi) makes a deposit payment amounting to $40 million,"
Eddie said.

According to him, the sales and purchase agreement, which was
signed on July 16, should be realized by Oct. 10.

Bumi will acquire KPC by buying out overseas-registered
Sangatta Holding Limited and Kalimantan Coal Limited, which hold
a 50 percent stake in KPC. Sangatta Holding is wholly owned by
Rio Tinto's Pacific Resources Investment Limited, while
Kalimantan Coal is entirely owned by BP International Limited.