Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Sat, February 16 2013, 11:50 PM
The Bakrie Group, which holds a 23.8 percent stake in London-listed Bumi plc., has appealed to the UK Takeover Panel to speed up the inquiry of oversights that allegedly occurred during the creation of Bumi plc.
The Bakrie Group has suffered setbacks after the takeover panel ruled that it was an affiliated party of PT Bukit Mutiara, which holds around a 10 percent stake in Bumi plc.
The decision made by the panel resulted in the removal of Bukit Mutiara’s voting rights, which are considered important as the Bakrie Group’s rival, Nathaniel Rothschild, is expected to seek approval to regain control of Bumi plc in a meeting scheduled to take place on Feb.21.
The takeover panel is now investigating why the fact that Bakrie Group is an affiliated party of Bukit Mutiara was not revealed during the creation of Bumi plc.
Bumi plc was established following a deal between the Bakrie Group and Rothschild in 2010. The company was created in a reverse takeover that involved Indonesia’s major miner PT Bumi Resources.
The Bakrie Group, Bukit Mutiara and another shareholder, PT Borneo Lumbung Energi & Metal are now restricted to only a 29.9 percent vote in Bumi plc., although their shareholdings account for 57 percent.
“The shareholders’ votes in Bumi plc have been severely distorted, creating disadvantages for Indonesian shareholders. The takeover panel has kept the key facts on the creation of Bumi plc secret,” said Bakrie Group chairman Nirwan Bakrie in a statement made available to The Jakarta Post on Saturday afternoon.
He urged the takeover panel to publish “factual findings” prior to the extraordinary general meeting even if it would cause a delay in the publications of any sanctions related to the alleged irregularities.
In the meeting on Feb.21, Bumi plc will vote on whether the company approves resolutions proposed by Rothschild to dismiss 12 of 14 names on Bumi plc’s board of directors and replace them with eight new names, including Rothschild himself.
According to the 2010 agreement, the Bakrie Group has the right to appoint names to sit in several key positions on the board of Bumi plc. The Indonesian Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), which has now become Indonesia’s Financial Service Authority (OJK), considered that by obtaining such right, the group could maintain its control over Bumi Resources despite the fact that the latter has become a subsidiary company of Bumi plc.
Bumi plc currently holds a 29.2 percent stake in Bumi Resources.
The OJK has the authority to require a tender to take place if the Bakrie Group loses control of Bumi plc, which may be cause for several changes in the company. But, the Bakrie Group could suffer such losses if the Feb.21 meeting approves the resolutions proposed by Rothschild.
Bakrie Group senior vice president Christopher Fong said in the statement that the group would take legal measures if Rothschild’s resolutions were approved. It would also call for a new extraordinary general meeting to appoint new directors and report the case to the OJK, said Fong.
“Violating the agreement can spark a mandatory tender offer of Bumi Resources, which has to take place at the 2010 price with transaction values worth US$4 billion,” said Fong.
In addition, he said, creditors would require immediate repayment worth $4 billion in loans.
“Once the minority shareholders consider the expensive consequences they would have to pay, we doubt that they would be willing to accept $8 billion for letting Nat Rothschild and his mates run Bumi plc,” said Fong. (ebf)
Post a Comment
Post a Comment