Good news for Sir Richard Gozney (KCMG, CVO, KStJ), who will be joining the board of Bumi after Thursday’s shareholder vote.
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The Indonesian shareholders in coal miner Bumi are open to a compromise that would see financier Nat Rothschild stand down as co-chairman of the company but remain on its board, according to people familiar with the matter. Publicly, however, the shareholders – the businessman Samin Tan and the Bakrie family – are insisting on pushing through their proposal to drop Mr Rothschild and will launch a charm offensive next week to persuade others to back them, reports the FT. The Bakries and Mr Tan, who together own 29.9 per cent of the voting rights in Bumi, said last Friday that they wanted to remove Mr Rothschild and other key directors from the board. They proposed Mr Tan and Indra Bakrie be named as co-chairmen.
Nat Rothschild has criticised the management and corporate governance at PT Bumi Resources, the Jakarta affiliate of London-listed Bumi plc, calling for a “radical cleaning up” of the Indonesian coal company he is trying to transform into a top-tier global miner. The letter, seen by the FT, has raised tensions between the aristocratic billionaire and his Indonesian co-investors, the Bakrie family, who are Bumi’s largest shareholders. Mr Rothschild, who owns 11 per cent of Bumi, which in turn owns 29 per cent of PT Bumi Resources, said his relations with the Bakrie family was good. The Bakries did not sign the letter, which was addressed to Ari Hudaya, a long-time Bakrie family lieutenant who is chief executive of both PT Bumi Resources and Bumi. A spokesman for the Bakrie family said the letter had taken them by surprise.
Is there any more Bumi Resources can do to make itself uninvestable to the average UK institutional investor?
It seems there is, albeit indirectly. Read more
More on Tony Hayward’s first big oil deal at his new investment vehicle Vallares– the $2.1bn acquisition, via a reverse takeover, of Turkish E&P company Genel Energy.
Vallar, the London-listed cash shell founded by financier Nat Rothschild, is proceeding with plans to expand its stake in Indonesia’s biggest coal company, as its transformation into a sizeable miner gains pace, reports the FT. Vallar stands to gain an indirect controlling stake in Kaltim Prima Coal mine – the world’s largest thermal coal mine – by increasing its shareholding in Bumi Resources, operater of the mine, to 51% later next month. Bumi Resources, owned by Indonesia’s Bakrie family, has a majority stake in KPC, while India’s Tata holds 30%. Andrew Beckham, CFO of both Bumi and Vallar, said in an email that the Bakries were likely to approve a plan to increase Vallar’s 25% stake in Bumi via a share swap planned for May, although he did not elaborate on how the transaction would occur.
JPMorgan’s hyperactive M&A banker Ian Hannam has been uncharacteristically quiet over the past few months.
And now we know why. He’s been working on a deal to create a “new London-listed resources champion”. Read more