Local property firm to buy oil operation

The publicly listed property firm PT Bumi Modern plans to launch a rights issue to raise proceeds to acquire an oil company called Gallo Oil in Yaman, according to company president Jay Abdullah Alatas.

Speaking at a company public expose, Alatas said that Indonesia's capital market watchdog (Bapepam) has yet to give the permit for the rights issue plan.

Kompas said that Bapepam was suspicious that the rights issue and acquisition plans had a conflict of interest because both Bumi Modern and Gallo Oil were partly owned by the Bakrie Group.(*)