Bumi progresses separation

ANOTHER director has gone, a former director’s plan has fallen away and the separation from Bumi Resources is on the go for Bumi PLC.
Bumi progresses separation Bumi progresses separation Bumi progresses separation Bumi progresses separation Bumi progresses separation

Courtesy of Bumi Plc.

Noel Dyson

It has been a difficult few months for the UK-listed company, which has coal assets in Indonesia.

The company launched an investigation into Bumi Resources, a company it has a 29% stake in, over alleged “financial irregularities”

It also faced a takeover proposal for that stake from the influential Indonesian Bakrie family and also for the 85% Bumi PLC owns of Berau, Indonesia’s fourth largest coal miner.

The British company noted the statement from the UK Panel on Takeovers and Mergers that ruled the Bakrie Group and Bukit Matiara, a vehicle under the indirect control of director Rosan Roeslani, should be regarded as concert parties.

As a result, Roeslani resigned from the Bumi PLC board. He joins Ari Hudaya, Nat Rothschild – who formed Bumi PLC – and Indra Bakrie in the former Bumi PLC directors’ club.

Rothschild launched his own bid to buy the Indonesian coal assets from Bumi PLC.

That bid has now been deemed “undeliverable”

To make that bid happened required PT Borneo Lumbung and Bukit Mutiara to sell their shares to new investors. Both shareholders said they had no intention of selling under the Rothschild proposal.

In light of that, Bumi PLC is working towards a deal that separates the Bakrie Group from it and also divests its minority interest in Bumi Resources.

However, it stresses, there are no plans to dispose of its Berau stake.

Nalin Rathod, a Bakrie Group nominee to the Bumi PLC board, has announced that he would resign from the board once the separation occurred.

Bumi PLC also will be gaining Nick von Schirnding as chief executive officer in the new year.

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