Bumi shareholders support split with Bakrie

By Ruli Setiawan

As expected, shareholders of London-listed Indonesia-focused miner Bumi Plc supported the proposed split with the Indonesian Bakrie family, which co-founded the company.

At a general meeting in London on Tuesday, shareholders also approved to change the name of the company to Asia Resources Minerals plc (LSE: ARMS).

?The company now looks forward to the opportunity to make a fresh start under a new name and with a near term focus on creating value through the development of its coal mining activities at Berau,? it said in a statement, referring to its 85 percent owned coal mining firm Berau Coal, Indonesia?s fifth largest coal miner.

Nick von Schirnding, Chief Executive of Bumi, said: "Bringing all parties together and creating a transaction that shareholders can unite behind has been a long and difficult process and I would like to thank our shareholders for their support. Today's vote allows us to focus on creating additional value for our shareholders through concentrating our efforts on Berau, a 23 million ton thermal coal operation. Our vision is to become a leading UK-listed coal company, with a focus on the growth markets of Asia."

"We currently look forward to the completion of the separation in late January. Assuming a successful outcome, our priorities will then be to return at least $400m to shareholders, refresh the board, which will include the appointment of a new, independent chairman, and continue with our plans for profitable growth through cutting costs and optimizing production."

Bumi was co-founded in 2010 by financier Nat Rothschild and the Bakries. But relations between the founders have soured during the past two years, battering the share price of Bumi, amid allegation of wrongdoings on all sides, boardroom fights, and falling coal prices.

Under the proposed complex separation deal, Bumi chairman Samin Tan would acquire the Bakries? 23.8 percent shares in the company for US$223 million. In return, the Bakries will buy back Bumi?s 29.2 percent shares in IDX-listed coal giant PT Bumi Resources Tbk for $501 million.

The transaction is expected to be wrapped up by early next year, assuming both sides could come up with the necessary funds.

Editing by Reiner Simanjuntak