Rothschild's Bumi offer lobs

BUMI PLC has been officially notified by its founder and former director Nathaniel Rothschild that he is challenging an offer by the Bakrie Group for key Bumi PLC assets.

Noel Dyson

The company did not release details of Rothschild’s counter offer, which arrived in a letter from NR Investments.

The Bakrie Group – controlled by the influential Bakrie family of Indonesia – proposed a $1.2 billion plan to buy Bumi PLC’s stakes in PT Bumi Resources and Berau Coal. That offer came through its subsidiary Long Haul.

Bumi PLC has a 29% stake in Bumi Resources and an 85% stake in Berau Coal, which is Indonesia’s fourth-largest coal miner.

It reported it had mined 5.5 million tonnes of coal for the third quarter, up 4% on the same period last year.

Bumi PLC’s board appointed the Rothschild Group to evaluate the Long haul proposal.

The Rothschild Group has been asked to run the ruler over the NR Investments counter offer.

Bumi PLC’s board said it would not make any recommendations regarding any possible transaction until the investigation it announced on September 24 was appropriately advanced.

That investigation was into financial irregularities at PT Bumi Resources. It has triggered a series of events that included the Long Haul proposal, Nat Rothschild resigning from the Bumi PLC board and PT Bumi Resources managing director Ari Hudaya also tendering his resignation to the Bumi PLC board.

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