Bakries’ $501 Million Exit From Coal Producer Is DelayedJesse Riseborough
Asia Resource Minerals Plc said a $501 million deal that will result in Indonesia’s Bakrie Group exiting its investment in the London-listed coal producer has been delayed by four weeks.
The deadline to complete the transaction is now Feb. 21 rather than Jan. 24, the company known as ARMS said today in a statement. The Bakrie family agreed that $50 million currently held in escrow will be transferred by Jan. 23 and will now only be repayable should ARMS be in material breach of its obligations under the conditions of the deal, it said.
ARMS, formerly known as Bumi Plc, and the Bakries have been working on a split for more than a year after relations between the Indonesian family and fellow founder Nathaniel Rothschild soured amid financial probes in Asia and the U.K. ARMS plans to return more than $400 million in proceeds from the separation deal to shareholders.
The transaction involves the Bakries buying back the 29.2 percent stake in Jakarta-based PT Bumi Resources they sold to the company when it was founded in 2011.
ARMS rose 4.1 percent to close at 230.25 pence in London.