Updated: 02/22/2013 03:28 | By Agence France-Presse

Rothschild loses battle for Bumi's board, Bakrie plan to go ahead

British financier Nathaniel Rothschild lost Thursday his battle for control of Bumi Plc, with plans by Indonesia's powerful Bakrie family to pull out of the London-listed coal joint venture to proceed.


Rothschild's motions to take control of the board were rejected by shareholders at an extraordinary meeting.

The board said it would now move on the plan by the politically-connected Bakries to divorce from Bumi Plc by selling their 23.8 percent stake in the group, in return for 10.3 percent of the highly prized Indonesia-based Bumi Resources, the crown jewel of the joint venture.

If agreed, the Bakries would buy the remaining 18.9 percent stake of Bumi Resources from Bumi for $278 million.

Calling the shareholder vote "an endorsement of the Board's strategy," the company said it "will now prioritise ... the execution of the separation from the Bakrie Group and PT Bumi Resources Tbk and will put this transaction to shareholders for approval as soon as possible."

Bumi Plc was co-founded by Rothschild and the Bakries in a $3 billion deal in 2011 in a bid to become one of the biggest global players in the coal industry and leverage Indonesian coal firms, including Bumi Resources, to London.

The Jakarta-listed Bumi Resources is the country's biggest thermal coal miner and is and is the heartbeat of the Bakrie family's business empire.

The Bakrie family and Rothschild began to tussle over control of the joint venture soon after it was founded, however.

The rift peaked last year when Bumi ordered an independent probe into allegations concerning potential financial irregularities in Bumi Resources, which was followed by the resignations of Rotshchild and one of the Bakrie brothers from the board.

The Bakries blamed Rothschild over the battle that caused Bumi's share price collapse last year.

Latest Photo Galleries on xinmsn

LIVE NEWS RADIO STREAMING

  • 938 Live

    938LIVE is Singapore's only English news and talk station which transmits round the clock with an engaging and enticing spread of programmes on current affairs, health, business and lifestyle as well as news every half hour until midnight.

  • Capital 958


    95.8FM城市频道的前身是"第三广播网"。上个世纪30年代末,新加坡就有中文广播,一路走来经过不少政治,社会局势的改变,中文广播在本地一直扮演举足轻重的角色。

facebook recommendations