17th Jun 2015 11:50
LONDON (Alliance News) - UK regulators Wednesday hit Asia Resource Minerals PLC with a fine within the amount anticipated by the Indonesian coal mining company, which was found to have breached listing rules and failing to identify related party transactions valued at just over GBP8 million.
The UK's Financial Conduct Authority imposed a fine of GBP4.7 million on Asia Resource Minerals PLC, which has already provisioned USD7.0 million to cover its costs.
Asia Resource Minerals indirectly owns 84.7% of PT Berau, which indirectly owns 90% of Berau Coal, a thermal coal producer in Indonesia. The parent listed in London in June 2011 with a market capitalisation of GBP2.47 billion and became part of the FTSE 250 index, though falling thermal coal prices, boardroom battles and allegations of financial irregularities have seen its value fall to about GBP88.6 million.
In a statement, the Financial Conduct Authority said the Indonesian coal mining company had inadequate systems and controls to comply with its obligations as a listed company. The breaches of the listing rules occurred between June 28, 2011 and July 19, 2013. The failings led to the suspension of the company's shares for three months from April 22, 2013, due to its inability to publish its 2012 annual financial report within deadline.
The related party transactions that Asia Resource Minerals, previously known as Bumi PLC, failed to identify were valued at just over GBP8 million and involved companies associated with Rosan Roeslani, formerly a non-executive director of the company.
Georgina Philippou, the FCA's acting director of enforcement and market oversight, said the company should have been "alive" to the regulator's requirements.
"Asia Resource Minerals fell below the standards we expect; the failings were serious and went on for two years and ultimately led to the suspension of the company?s shares. We expect listed companies to comply with the UK Listing Rules from Day 1 of listing and the penalty in this case demonstrates that we will take strong action when companies fail to meet the required standards," Philippou said in a statement.
The fine took into account a 30% discount because the company agreed to settle at an early stage of the investigation.
Asia Resource Minerals must pay the financial penalty by no later than June 26.
Asia Resource Minerals shares have been suspended from trading at the company's own request since May 22, when the company said it was concerned with its ability to meet its obligations under listing rules. Amir Sambodo, a former chief executive, has taken control of operations in Indonesia against the company's will.
By Samuel Agini; [email protected]; @samuelagini
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