Shareholders of Bumi Plc (BUMI), the coal producer at the center of an ownership dispute, will vote next month on a proposed $501 million deal that will separate the group from founding investors the Bakrie family.
A general meeting in London will vote on the plan on Dec. 4 as well as a name change to Asia Resource Minerals Plc, the company said today in a statement. The sale of Bumi’s 29.2 percent stake in PT Bumi Resources (BUMI) to the Bakrie Group was agreed on at a 116 percent premium to the current market value, it said today. Bumi confirmed plans to return at least $400 million in cash to shareholders.
For longer than 18 months Bumi has been at the heart of a battle for control between the Bakries and Nathaniel Rothschild, 42, scion of a centuries-old British banking dynasty, as waning coal prices, board infighting and probes in the U.K. and Indonesia weighed on the stock. The shares plunged 69 percent last year as the Bakries and Rothschild made rival proposals to unwind the $3 billion deal that brought them together in 2010.
Bumi, owner of stakes in two Indonesian coal suppliers, last month agreed to sell its PT Bumi stake to the Bakries as part of a two-step plan to separate from one of Indonesia’s wealthiest families. Bumi Chairman Samin Tan has agreed to buy the Bakries’ 23.8 percent holding in Bumi Plc for $223 million.
The Bakries’ Long Haul Holdings has placed $50 million in an escrow account with Deutsche Bank AG, Bumi said today. It has no commitment from Tan or the Bakries, nor seen any evidence from them that the necessary funds are available, Bumi said.
The stock gained 4.8 percent yesterday to 224.25 pence by the close in London, valuing the company at 541 million pounds ($871 million).
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