Bumi Plc?s Board favoring Bakrie Group

By Ruli Setiawan

The Bakrie Group is gaining ground on its high-profile battle within Bumi Plc with Nathaniel Rothschild after the company?s Board issued a unanimous recommendation that shareholders vote against all the resolutions proposed by the global financier.

Bumi Plc said that following notice from Rothschild to propose the removal of 12 of the 14 current directors and the appointment of new directors, Bumi plc announces the posting of a circular which includes the notice that contains the Board's unanimous recommendation that shareholders vote against all of the proposed resolutions ("NR Resolutions").

?The Bumi plc Board strongly believes that the NR Resolutions are not the way forward for the Company and, if passed, will lead to stalemate, continued shareholder disputes and further value destruction,? it said in a statement.

Also, the current directors of Bumi not required to resign by the NR Resolutions, Sir Graham Hearne and Steven Shapiro, have informed the Bumi Board that they do not wish to serve on the board proposed by Mr. Rothschild and will resign if the NR Resolutions are passed.

Voting against the NR Resolutions means the current Board can deliver:
- A separation from the Bakrie Group
- The disposal of Bumi Resources ‑ a transaction worth more than US$580 million including $278 million in cash
- An operating group focused on Berau and with significant cash resources
- A clear strategy for developing the business

The Board supports separation of Bumi Plc from the Bakrie Group and Bumi Resources, and focused on managing and on developing Berau Coal Energy (BRAU), wherein Bumi Plc has 85 percent shares.

"The Board does not believe that Mr. Rothschild's proposed board would be able to investigate the allegations with any greater success than the current Board nor take any more significant action as a result of the conclusions of the investigation than the current Board is taking," Bumi Plc added.

Editing by Dadan Wijaksana