Updates from Bumi and BHP Billiton
Overnight, the sell-off continued in Asia with the Hang Seng slipping -0.65% at 20,250 though the Nikkei climbed +1.89%. %VIRTUAL-SkimlinksPromo%
First off, a trading update from Indonesian coal operator Bumi, recently hit by a $2.4bn pre-tax annual loss. Bumi shares were recently suspended. Bumi says it's "engaging" with the Financial Conduct Authority on a hoped-for resumption of trading following its AGM on 26 June.
It says its board remains "committed to the delivery of a separation from the Bakrie Group and Bumi Resources". (Bumi's asset Berau Coal was recently written down by more than $800m.) Negotiations to a separation are ongoing and an update will be provided at the AGM it says.
However shareholder lobby firm Pirc recently stated that Bumi's eleven directors may be liable for criminal charges because they failed to keep their accounts in shape. Pirc also recommends that investors should not vote for the re-election of chairman Samin Tan.
Next, BHP Billiton says it has extended its its long term joint venture relationship with ITOCHU Corporation and Mitsui & Co, who collectively hold a 15 per cent interest in BHP Billiton's Western Australia Iron Ore mine, rail and port infrastructure.
ITOCHU and Mitsui will invest approximately US$0.8 billion and US$0.7 billion in shares and loans of BHP Iron Ore Pty Ltd. The transaction is subject to Australian Foreign Investment Review Board approval and other conditions and is expected to be completed in the September 2013 quarter.
"We are pleased to extend our successful, long standing joint venture relationship with ITOCHU and Mitsui," says BHP Billiton President Iron Ore, Jimmy Wilson. The new mine "will have initial production capacity of 35 million tonnes per annum with future expansion potential."
Finally, Moneysupermarket.com says it has appointed Robin Klein as a non-exec director with immediate effect. He will be a member of the remuneration committee of the Board. Klein is currently a venture partner of Index Ventures and a founding partner of The Accelerator Group.
He's also the non-executive chairman of Moo Print Limited, Wonga Group Limited and MyBuilder Limited plus a non-executive director of Lifealike Limited, Stylescape Limited and Zoopla Property Group Limited.
"We are delighted that Robin has agreed to join the Board as a Non-Executive Director," says Gerald Corbett, Chairman. "With his experience of advising internet and entrepreneurial businesses, he will be a valuable addition to the Board."