ARM CEO to meet with Bakrie next week

CEO of London-listed Asia Resource Minerals (ARM) Nick von Schimding is reportedly planning to meet the Bakrie Group in Indonesia next week amid uncertainty over the firm?s planned divorce from the Indonesian investor.

Von Schimding?s visit to Indonesia is also intended to seek ways to cut cost at IDX-listed coal miner PT Berau Coal, which is controlled by ARM, amid the lingering drop in coal prices, according to a report in London Friday.

ARM, formerly known as Bumi Plc, is still trying to effect a split from the Bakries to end months of turmoil coloured by allegations of financial wrongdoing and a war with co-founder Nat Rothschild.

The planned split has been mired with uncertainty as the Bakries are struggling to find cash to help finance the transaction. ARM, an Indonesia-focused coal miner, agreed in January to extend the deadline for the split to February 21, from the original deadline of January 24.

The Bakries co-founded Bumi in 2010 together with Nat Rothschild. But following the collapse in coal prices and boardroom quarrels between the two co-founders, shareholders agreed last year to a proposal for a split of the company from the Bakries.

Under a complex separation transaction, the Bakrie family will sell its ARM stake of 23.8 percent for $223 million to outgoing ARM Chairman Samin Tan. The proceeds will then be used by the Bakries to help buy back a 29.2 percent stake in IDX-listed coal giant PT Bumi Resources Tbk currently held by ARM. (*)