Indonesia regulator says one of Bumi's acquisitions "unfair"
JAKARTA, June 17 (Reuters) - Indonesia's capital market regulator Bapepam said late on Tuesday that one of the three mining firms acquired by coal miner PT Bumi Resources Tbk (BUMI.JK) earlier this year was done at an "unfair" price.
Bumi acquired three firms in the coal sector, PT Darma Henwa Tbk (DEWA.JK), PT Fajar Bumi Sakti, and PT Pendopo Energi Batubara worth a total of 6.18 trillion rupiah ($607.4 million) in January, raising questions among many investors over the valuations used and corporate governance. [ID:nJAK99301]
"Out of the three firms acquired (by Bumi), Darma Henwa, Fajar Bumi Sakti and Pendopo, one was seen as unfair. Fajar Bumi Sakti was seen to be valued higher than a fair market price," said Fuad Rahmany, the chief of market regulator Bapepam.
Rahmany added that any decision to change the terms of the acquisition would have to be taken by Bumi's shareholders. Bapepam plans to meet with Bumi later on Wednesday to discuss its findings, he said.
Bumi is part of the diversified Bakrie group (BNBR.JK) which is controlled by the family of politician and cabinet minister Aburizal Bakrie.
It was briefly the biggest listed company on the Indonesian stock exchange last year, but fears over its debt level combined with a global financial market downturn hit the company's stock price. Its stock market value is $3.98 billion.
For a factbox on parent company Bakrie & Brothers, click [ID:nSP396314] ($1 = 10,175 rupiah) (Reporting by Andreas Ismar; Writing by Tyagita Silka; Editing by Sara Webb)
