Bumi Plc, the London-traded Indonesian coal venture founded by Nathaniel Rothschild, rose to the highest in more than two weeks before a board meeting scheduled for tomorrow.
The stock advanced 12 percent to 185.70 pence by the close in London, the highest price since Sept. 21. That was the last day of trading before Bumi said it was starting an urgent probe into “potential financial and other irregularities” at its Indonesian operations, especially 29 percent-owned PT Bumi Resources.
Bumi Plc has hired a London lawfirm to investigate a $637 million writedown of development funds and exploration assets. Liberum Capital Ltd. analysts wrote this week that the only two acceptable outcomes for investors in the London company will be Bumi Plc gaining a controlling stake in Jakarta-based Bumi Resources, or a sale or swap agreement that separates Bumi Plc from the Indonesian company.
The board meeting has been planned for a year, Kenneth Allan, marketing director at PT Borneo Lumbung Energi & Metal, which holds a 23.8 percent stake in Bumi Plc, said Oct. 8. “Our people are going up there,” Allan said, adding he hasn’t seen a meeting agenda and isn’t a board member of Bumi Plc.