KNF notifies the prosecution regarding Bumech deal

Financial market regulator KNF has notified the prosecution of suspicion of committing a crime regarding the alleged purchase of Bumech stock by the China Coal Energy Company, KNF said in a statement. KNF launched its investigation after Bumech announced that the Chinese company increased its stake in the company to 9.77 percent. After the information, the company's stock increased by some 26 percent. KNF suspended Bumech trading on the Warsaw Stock Exchange, after launching the investigation. During the inquiry, KNF confirmed that no such transaction took place. The signature of China Coal's CEO Li Yanjiang on the letter notifying about the transaction was forged and the law firm which name was also on the note claims it had nothing to do with said deal. KNF was also able to identify two investors who bought Bumech stake before the information regarding China Coal alleged acquisition was announced, and sold the shares after such information was released to the public, driving the stock price up. Bumech specializes in repairing mining equipment and machinery.