Rothschild supports Bumi separation from Bakrie
Saturday, December 14 2013 - 04:59 AM WIB
London-listed coal mining firm Bumi Plc announced Friday that financier Nat Rothschild has agreed to support the company?s planned separation from the Indonesian Bakrie Family following talks with the company?s board and outgoing chairman Samin Tan.
As a result of the deal, Rothschild, one of Bumi's largest shareholders, will be able to name an independent, non-executive director to the board - a year after resigning his own position. ?Rothschild has indicated a wish to support the separation and enter into a relationship agreement with the company following completion, which would grant Rothschild the right to nominate an independent director for appointment to the board,? the company said in a statement.
Rothschild co-founded Bumi with the Bakries in 2010, but relations between the two have soured during the past couple of years with accusations of wrongdoings from both sides amid the global coal market downturn. Rothschild has also been at odds with the current Bumi management.
Bumi shareholders are scheduled to vote December 17 on the planned divorce from the Bakries.
Nick von Schirnding, Bumi's Chief Executive, commented: "I am very pleased that Nat Rothschild, a founder shareholder, has chosen to support the separation. Nat is a major investor in the company and we look forward to working with his nominated independent director. This agreement will help us to deliver a value-accretive transaction which is in the best interests of all shareholders. We all accept that a strong independent board is the best way to deliver shareholder value."
Rothschild said, "My first priority, as before, will be to protect the interests of Bumi's independent shareholders. With that in mind, the best way I can currently influence the company is to nominate a director to what will be an independent board dedicated to realising value. I have had full, constructive discussions with Samin Tan and Nick von Schirnding and we are united on the need to deliver value for all."
Editing by Reiner Simanjuntak