(Updates with comment from Bumi Resources in third paragraph.)
Oct. 17 (Bloomberg) -- Bumi Plc, founded by Nathaniel Rothschild, said its proposed acquisition of 75 percent of PT Bumi Resources Minerals from coal producer PT Bumi Resources will not proceed because of continuing market uncertainties.
Jersey, Channel Islands-based Bumi made the announcement today in a Regulatory News Service statement. Bumi Plc owns 29.18 percent of Bumi Resources, according to data compiled by Bloomberg. Jakarta-based Bumi Resources controls 58.15 percent of Bumi Minerals, according to the data.
Bumi Resources’ intent of ‘monetizing investments’ including in Bumi Minerals hasn’t changed, Dileep Srivastava, a director at Bumi Resources, said in a separate e-mailed statement.
“This action ‘‘not to proceed’’ at this time is taken in the best interest of all our Bumi Resources shareholders,” Dileep said. Bumi Resources is Indonesia’s biggest coal producer. The move will “avoid any risk of them being disadvantaged because of the current volatile market environment.”
The Jakarta Composite index has fallen 11 percent since its Aug. 1 record high with shares of Bumi Minerals dropping 23 percent over the same period. The stock closed down 6.2 percent at 610 rupiah in Jakarta.
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