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Bumi Shareholder Borneo Sees Bakrie Separation Completed by May

March 6 (Bloomberg) -- PT Borneo Lumbung Energi & Metal, a shareholder in Bumi Plc, said it expects the Bakries to complete transactions that will allow the Indonesian family to exit from the London-traded coal venture by late April or early May.

Borneo is confident the Bakries will have the funds to complete the deals that will separate the family from Bumi, Borneo President Director Alexander Ramlie said. Borneo and the Bakrie Group jointly control 47.6 percent of Bumi through two special purpose vehicles, which would be dissolved as part of the separation plan.

The Bakries have proposed exchanging their 23.8 percent of Bumi for 10.3 percent of PT Bumi Resources, Indonesia’s largest coal producer. That plan would also see Bumi Plc sell the remaining 18.9 percent of its Bumi Resources stake for $278 million to the family.

“We target the signing of the sale and purchase agreement between Bumi Plc and the Bakries in the third week of March maybe,” Ramlie said in an interview in Jakarta today. The Bakries “still have a lot of assets that are valuable and they are in the process of selling down their assets.”

The Bakrie family is seeking $1.8 billion from two bidders for its media company Visi Media Asia, Dow Jones Newswires reported today, citing people familiar with the matter that it didn’t name.

Bumi Plc shareholders voted Feb. 21 against a proposal by co-founder Nathaniel Rothschild to take control of the board, clearing the way for the coal producer to proceed with a deal to split from Indonesia’s Bakrie family. The separation would leave Bumi Plc with an 85 percent stake in PT Berau Coal Energy, Indonesia’s fifth-largest coal miner.

To contact the reporter on this story: Berni Moestafa in Jakarta at bmoestafa@bloomberg.net; William Mellor in Sydney at wmellor@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

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