Bumi-Energi merger is on, valuation matters

Those involved in the merger plan of PT Bumi Resources Tbk and PT Energi Mega Persada Tbk claimed they will go ahead with the plan scheduled August 9, 2006 for the listing of the merger company. But valuation matters the most, especially when they use March 31, 2006 financial report for the merger. Why?

As far as I know, until now it's not clear yet on the total proceeds of Bumi Resources divestment of two very important assets, PT Kaltim Prima Coal and PT Arutmin Indonesia.
What we knew actually the total acquisition value of KPC, Arutmin and related assets at US$3.2 billion. But that's not the total proceeds Bumi will get from PT Borneo Lumbung Energi who acquire the assets.
Using March 31 financial position to value Bumi is very much different with the reality it may face when it conclude the divestment transaction. "Most likely the merger will be heavily favorable to the majority shareholders and unfavorable for minority shareholders," an investment banker said.
I wonder how securities exchange authority deal with the issue?

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