Asia Resource Minerals, formerly known as Bumi Resources, has been slugged with a £4.65 million fine by the UK’s Financial Conduct Authority (FCA) for listing irregularities. The FCA said the company had committed serious breaches in relation to a number of disclosure and transparency rules between listing in 2011 and July 2013.
It said that the company had “inadequate systems and controls to comply with its obligations as a listed company, breaching various rules applicable to listed companies and failing to identify related party transactions valued at just over £8 million.”
The company has had a chequered stock market life in the UK dominated by a slumping coal price and a very public falling out between founders, the financier Nat Rothschild and the prominent Indonesian Bakrie family.
Rothschild failed in an attempt to change the board in 2013 but the wrangling has continued amid concerns over the accounts at the company’s Indonesian businesses.
Asia Resources said the fines resulted from an investigation into dealings between PT Berau and entities related to Rosan Roeslani, a business associate of the Bakrie family and major shareholder in PT Berau, one of the coal businesses in which Bumi took an interest.
The company said that it had accepted the FCA’s findings in return for a 30% discount on the possible maximum fine.
Asia Resources has received a takeover approach from Asia Coal Energy, a vehicle of the Sinarmas Group. Nat Rothschild recently agreed to drop his US$100 million refinancing plan and accept the offer in respect of his 17.3% stake.