LONDON (Alliance News) - Asia Resource Minerals PLC Wednesday said Chief Executive Amir Sambodo has agreed to stand down and has been replaced by Hamish Tyrwhitt.
Asia Resource said Sambodo agreed to stand down ahead of the company securing refinancing and recapitalisation. Sambodo also resigned as president director of PT Berau Coal Energy Tbk and of PT Berau Coal, with immediate effect. Both are subsidiaries of Asia Resource.
Tyrwhitt was previously chief executive and managing director of Leighton Holdings Ltd until March 2014 and has extensive experience in Asia where the company operates.
Asia Resource said Sambodo will remain available for consultation to the company until May 2016.
Earlier Wednesday, the company said it is facing a "substantial financial penalty" from UK regulator the Financial Conduct Authority in relation to related-party transactions.
The company said it reported to the FCA in May 2013 three previously undisclosed related party transactions in the period from June 28, 2011 to July 19, 2013, as it believed there had been breaches to certain rules. Asian Resource had said in November 2013 that the FCA was investigating the transactions.
On Wednesday, Asia Resource said the FCA has now presented its investigation summary to the company, which cited "serious breaches" of numerous rules.
As a result, the financial regulator has proposed imposing a "substantial financial penalty" against Asia Resource. The company said it is complying with the investigation to try to come to an agreed outcome, but said it has made a USD7.0 million provision for 2014 as a result.
Asia Resource is currently mulling its response to the proposals made by the Financial Conduct Authority, but declined to comment further to Alliance News as the investigation is still ongoing.
Asia Resource had previously won a court case against former director Rosan Roeslani over cash and assets that he owed to the company. Roeslani is connected to the Bakrie Group, which Asia Resource split from in March, ending a year-long process to divide up financier Nat Rothschild's former Indonesian thermal coal company Bumi PLC.
In March, the company disposed of its 29.2% interest in Bumi Resources to the Bakrie Group for USD501 million, and RACL, a company owned by Asia Resource Minerals' former chairman, Samin Tan, bought the Bakrie Group's entire 23.8% interest in the Asia Resource Minerals for a reported USD223 million. Tam agreed to step down as chairman of the company following the separation.
Asia Resource shares were up 1.9% to 13.50 pence per share on Wednesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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