BUMI PLC: Correction: Update Announcement

Correction made to announcement date 


                                                                               

12 December 2012

For Immediate Release
                      Bumi plc ("Bumi" or the "Company")                       
                              Update announcement                              

Highlights:

  * Near final version of investigation report received
      * Board evaluating all legal and commercial options available to it in light
    of report
      * No material asset write-downs as a result of the investigation
      * Company working towards a transaction which separates the Bakrie Group from
    the Company and divests the minority interest in Bumi Resources1
      * Relevant shareholders (PT Borneo Lumbung Tbk and Bukit Mutiara) have
    informed the Board that they have no intention of selling their
    shareholdings on the terms of the NR Investments Proposal2
      * CEO Nalin Rathod to be succeeded by Nick von Schirnding


Bumi announced on 24 September 2012 an independent investigation into
allegations concerning, among other matters, potential financial and other
irregularities in the Company's Indonesian operations, especially in relation
to PT Bumi Resources Tbk ("Bumi Resources"), in which the Company has a 29%
interest. The Company has now received a near final version of a report (the
"Report") by Macfarlanes LLP. In light of the Report, the Board is evaluating
all legal and commercial options available to it and has been engaging actively
with UK regulators and will continue to do so as appropriate.  
In connection with the investigation, the Company has conducted a technical
examination which has shown that information has been obtained illegally by
email hacking. The Board also notes the statements made on behalf of the Bakrie
Group about the use of illegal e-mail hacking to obtain information used in the
investigation. The Board is considering with its advisers further issues raised
by the provenance of the material passed to it and the bearing these matters
may have on the courses of action available to the Company. However, these
matters do not affect the seriousness with which the Board is treating the
allegations. 
The Company's Audit Committee has considered whether, in light of the Report,
any further asset write-downs will be required and believes that these are not
likely to be material given the extensive write-downs already made in respect
of certain development assets, which were a main focus of the Macfarlanes
investigation. Separately, and unrelated to the Report, there will be a
significant (non-cash) year end accounting adjustment to reflect the impairment
of the carrying value of PT Berau Coal Energy Tbk ("Berau") due to lower
thermal coal prices and the reclassification of the Company's 29% shareholding
in Bumi Resources from an associate to an investment which will be marked to
market. 
 As previously announced, the Company has received a proposal from Long Haul
(the "Long Haul Proposal"). An alternative proposal has also been received from
NR Investments (the "NR Proposal")2. The Board notes that the NR Proposal
requires certain shareholders, PT Borneo Lumbung Tbk ("Borneo") and Bukit
Mutiara, to agree to sell their shares. These shareholders have informed the
Board that they have no intention of selling on the terms of the NR Proposal. 
The Board will not be in a position finally to recommend a course of action
until regulatory processes are sufficiently advanced, but is working towards a
transaction which separates the Bakrie Group from the Company and divests the
Company's minority interest in Bumi Resources as soon as practical. Both the
Long Haul Proposal and the NR Proposal include these two steps. 
It is not and never has been the intention of the Board to recommend the
disposal of Berau on the terms proposed by the Bakrie Group. 
Mr Nalin Rathod has informed the Board today of his intention to step down as
Chief Executive Officer of the Company on 31 December 2012 and will serve as a
non-independent, non-executive director. He will be succeeded as Chief
Executive by Mr Nick von Schirnding who will join the Board on that date.3 
Sir Julian Horn-Smith commented: "The Independent Non-Executive Directors are
continuing to work through a number of very complex issues as quickly as
possible with a clear focus on maximizing shareholder value. I would like to
thank Nalin for his contribution during his time as CEO of the Company. We are
fortunate to have a candidate of the calibre of Nick von Schirnding to lead the
Company through this next phase." 
1 Pending the conclusion of an ongoing regulatory investigation the Board will
not be in a position to recommend a course of action to shareholders 
2 The NR Proposal comprises the following proposed steps: 
 1. New investors in Bumi would subscribe on a non pre-emptive basis for new 


    shares in Bumi equal to 25% of the current issued share capital (20% of the
    enlarged). The subscription price is assumed to be the prevailing Bumi
    share price and would be equal to the price paid to Borneo and Bukit
    Mutiara to buy back their Bumi shares (see step 4 below);
     2. Bakrie Group to exchange with Bumi its effective 23.8% interest in the
    issued share capital of the Company for 10.3% of the issued share capital
    of Bumi Resources. The resultant Bumi treasury shares would be cancelled;
     3. Bakrie Group to acquire the balance of Bumi's interest in the issued share
    capital of Bumi Resources (18.9%) for US$278 million in cash;
     4. Borneo and Bukit Mutiara to sell their interests of 23.8% and 9.8%
    respectively in the issued share capital of Bumi in a targeted buyback for
    a price per share equal to the subscription price of the new shares issued
    to the new investors; and
     5. Bumi to acquire the 4% of the issued share capital of Berau Coal held by
    Bukit Mutiara for a cash consideration based on the prevailing Berau share
    price (and subject to BAPEPAM consent to Bumi continuing to hold greater
    than 80% of Berau)


Steps 1 to 4 above would be interconditional. Steps 2 and 3 are identical to
steps A and B of the Long Haul Proposal. 
3 No further information is required to be disclosed pursuant to paragraph
9.6.13 of the Listing Rules of the UK Listing Authority 
Note to Editors 
Prior to joining Bumi plc in May 2010, Nick von Schirnding was a senior
executive at Anglo American plc, where he played a key role in the listing of
the group in London and was a close advisor to two successive CEO's.   Prior to
this Nick worked for De Beers in the Indian diamond industry, spending periods
of time in Mumbai and Surat.  Nick has worked in IR, Treasury, Accounts as well
as a two year stint heading up a venture capital company for Anglo American in
South Africa.  Nick qualified as a lawyer and also holds an accounting
qualification. 
For enquiries, please contact: 
Finsbury:                                          +44 (0) 20 7251 3801 
Ed Simpkins 
END 
-0- Dec/12/2012 15:05 GMT
 
 
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