JAKARTA, Indonesia and SINGAPORE, February 9, 2012 /PRNewswire/ --
- Strong Interest in Resource Sector, Particularly in Indonesia
- Convinced by the Substantial Prospects of the New Bumi PLC
- Dishearted by Counterproductive Statements from Bumi PLC Insiders in November
- Wholly Supportive of an Agenda that Provides Clarity and Efficiency
- In Event No Resolution Immediately, Yawadwipa to Take Action
Yawadwipa Companies ("Yawadwipa" or the "Company") released the following statement today related to the continuing public saga surrounding Bumi PLC ("Bumi"):
"Yawadwipa has observed the variety of more recent events related to Bumi and following its announced transaction with Borneo Lumbung Energi & Metals ('Borneo') in November of 2011. As stated previously by us, we are highly interested as investors in the natural resource sector and were strong supporters of Mr. Samin Tan and his management team at Borneo. Despite the share price reduction that has occurred since the transaction, in part due to declines in commodity prices, we were advocates of the transaction with Bumi and believe strongly in the strategic merits of the deal, both in the intermediate and long-term. We are confident in the core operating teams and the prospects for the underlying assets.
"Nonetheless, we have become increasingly concerned with the effects of the current 'noise' at the Bumi board level, particularly given broader market volatility and global economic uncertainty. We view this friction, whether purely in the name of efficiency or otherwise as counterproductive to the interests of Bumi shareholders especially during a time post-transaction when extreme coordination and cooperation is required. It is unfortunate that such matters needed to be made public and could not be handled in private, though the precedent was set by a certain Bumi PLC insider in November during the period prior to consummation of the Borneo transaction. The November comments, whether valid or not, were recklessly and carelessly delivered via a public forum. As a private investor, this may well have been tolerable behavior, but as an insider and board member, such delivery, in our opinion, was wholly unacceptable. If an employee did this, such individual most certainly would have been fired on the spot.
"As a prospective shareholder of Bumi, we now seek an end to the public drama. We find the proposals of Mr. Tan and Mr. Bakrie to be wholly consistent with streamlining an organization that has transformed itself following the strategic merger and consistent with good corporate governance. We are supportive of their agenda, which we view as in the best interest of Bumi shareholders as it will accelerate and focus the efforts of Bumi going forward. The market opportunities for the franchise are too great to tolerate a divided board. The value of the legacy board has since passed. The steady state is not an option and is unhealthy.
"Yawadwipa is strongly in favor of becoming an owner in Bumi but will only do so when governance stability is assured. As such, we recommend the proposal outlined by Mr. Samin Tan be executed upon without further delay. Waiting until a formal vote only hurts the shareholders of Bumi and the prospects for the company. In the event swift action is not taken by those members who have been kindly asked to relieve themselves of their respective duties, an affiliate of Yawadwipa will immediately take whatever steps necessary to support Mr. Tan's agenda, including but not limited to acquiring sufficient voting shares of Bumi so as to assure the passage of the agenda."
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