BUMI PLC: Statement re Accounting reclassification
Bumi plc ("Bumi" or the "Company")
05 November 2012
For Immediate Release
Bumi plc ("the Company") announces that, following a review of its 29% shareholding in PT Bumi Resources Tbk ("Bumi Resources"), it has determined that on the basis of its assessment of its level of influence over the management and conduct of PT Bumi Resources following recent developments, it is no longer appropriate for the Company to account for its shareholding in Bumi Resources as an Associate, and instead it should be accounted for as an investment under IAS 39.
The result of this determination is that the Company's investment in Bumi Resources will be valued in the Company's financial statements using the underlying share price of Bumi Resources as published on the Indonesia Stock Exchange. This will lead to a charge (non-cash) in the 2012 income statement of the Company but the change in classification does not otherwise affect the business, assets, financial position or prospects of the Company, or the Company's shareholding equity interest in Bumi Resources.
The Board of the Company reiterates its intention to maximise value in respect of its 29% shareholding in Bumi Resources, including in the context of the relevant parts of the Long Haul proposal of 11 October 2012, which is being evaluated by the Rothschild Group on the basis of value for shareholders and deliverability. This accounting reclassification has no bearing on this process. The Board will in any event not make any recommendation regarding the Long Haul proposal until the investigation into alleged financial irregularities in the Company's Indonesian operations is appropriately advanced.
For enquiries, please contact:
Bumi plc: +44 (0) 20 7201 7507
Nick von Schirnding
Finsbury: +44 (0) 20 7251 3801
-0- Nov/05/2012 07:18 GMT