Asia Resource Minerals Plc, a thermal-coal producer in Indonesia, was fined 4.65 million pounds ($7.3 million) for breaching U.K. listing rules.
The company had “inadequate systems and controls to comply with its obligations as a listed company,” the U.K.’s Financial Conduct Authority said Wednesday in a statement. ARMS, as the company is known, failed to identify related-party transactions valued at more than 8 million pounds, according to the FCA.
In April 2013, the producer said it would be unable to publish 2012 results on time because of a review into the finances of its subsidiary PT Berau Coal Energy Tbk. Its shares were suspended from trading for three months.
“ARM fell below the standards we expect; the failings were serious and went on for two years,” Georgina Philippou, acting director of enforcement and market oversight, said in the statement on the regulator’s website.
The company brought the transactions related to its former director Roslan Roeslani to the regulator’s attention in May 2013, ARMS said in a separate statement.
The company in December won an arbitration order against Roeslani over his failure to deliver $173 million of assets and cash. He had agreed in June 2013 to hand over the holdings after a review of the company’s Indonesian unit found $201 million of spending with “no clear business purpose.” Roeslani last month challenged that ruling at the Singapore High Court.
“The company reviewed and enhanced its policies and procedures in the context of the return to trading of its shares which took place on 22 July, 2013,” ARMS said.
The company agreed to settle “at an early stage in the investigation” and qualified for a 30 percent reduction in penalty, which would have been 6.64 million pounds, the FCA said.
The producer, with a history of battles for control among shareholders, is subject to a takeover offer by a group funded by Indonesian billionaire Eka Tjipta Widjaja’s Sinarmas Group.
Financier Nathaniel Rothschild, one of the founders of the business, last week said he would accept 56 pence a share for his 17.2 percent stake from Asia Coal Energy Ventures. Shareholders are due to vote on the offer on June 29.