||EPS - Basic
||Market Cap (m)
Real-Time news about Bumi (London Stock Exchange): 0 recent articles
|naughtynicky72: Interesting News ! Wonder what will happen friday with the share price can Bumi round the week off with a 5 day rise time will tell ! GLA .|
|naughtynicky72: We are waiting around too see whats going on and the share price just bounces around the £2 mark waiting for news too come ?? Im holding on for the ride Naughty !|
|naughtynicky72: Hopefully Tamboerskloof they can get on with what they need too do and get this share price going north again ! Good Luck Too All You Longs ! ..|
|dmore2: I'm willing to bet, that the barkrie's will back out of the deal - last minute, and the share price will plummet!|
|sirgainalot: Interesting points.
God knows who's supporting the share price.|
|stuart14: It makes me laugh that they have a boardroom battle over the board. The Board wins and then half of them resign anyway!
Hopefully the de-merger will push ahead and the share price will start to reflect the value of the simpler entity.|
|ashthorpedo: Tuesday 22 January, 2013
NR Investments Ltd
Statement by NR Investments
RNS Number : 1314W
NR Investments Limited
22 January 2013
NR Investments ("NRI") responds to apparently co-ordinated announcements made today by Bumi PLC and by Long Haul Holdings and the Bakrie Group of Companies; expresses disappointment at the Company's failure to publish the Macfarlanes Report into misappropriation of shareholder assets; details the urgent, unanswered questions facing the Company and its Chairman; challenges the Company's legal position re disclosure of Macfarlanes' findings; and deals with the issue of liability
It is regrettable that an investigation into the serious misappropriation of corporate assets has resulted in a short, bowdlerised announcement by Bumi PLC which is focused more on settling personal scores with Nat Rothschild than it is on telling shareholders what happened to up to $1 billion of missing funds.
Today's announcement from Bumi PLC is hopelessly compromised by the Board's failure to publish in full the Macfarlanes investigation into serious financial irregularities at the Company. Even so, it cannot avoid acknowledging that corporate funds have been looted out of Bumi in large volumes.
Despite all attempts by Bumi's Board to throw dust in the eyes of the investing public, that finding is decisive. It makes Samin Tan's position as Chairman of Bumi PLC untenable. Only last weekend he described himself as a "friend" of the Bakries. He has been officially classified a concert party partner of theirs by the Takeover Panel. He and other friends of the Bakries must resign from the Board immediately.
Below, we set out matters which point to ongoing malfeasance whilst Samin Tan has been Chairman of Bumi PLC. We also set out many pressing questions left unanswered by the redacted, truncated and censored format in which Macfarlanes' findings have been published today.
The failure of Bumi PLC to provide answers to these questions, having earlier promised full disclosure, is intolerable. The Company's claim that it is prevented by legal constraints from telling investors what happened to their stolen money is wrong, as we also explain below.
Earlier today, NR Investments revealed that Bumi PLC's Chief Executive Officer Nick Von Shirnding had removed claimed professional qualifications from his website biography after NR Investments identified serious and material inaccuracies. Sir Julian Horn-Smith, Senior Independent Director and Chairman of Bumi PLC's Nominations Committee, has confirmed that Nick von Schirnding is not a qualified lawyer and does not hold an accounting qualification, which tends to support the argument that investors were misled. Assertions about von Schirnding's qualities are rendered meaningless by the initial over-statement of qualifications.
We have proposed replacing Bumi PLC's hopelessly compromised leadership with a new, professional Board and management, and in the light of today's findings the forthcoming General Meeting vote cannot come soon enough.
Investors face a choice at the General Meeting. The current Board is proposing the effective liquidation of the Company by a Chairman who is looking to reclaim large amounts of his own money from the Bakrie Group. We are proposing a restructured Company with new management and proper governance arrangements, in possession of world-class thermal coal assets. We hope that investors will take the latter course.
Bumi PLC claims in its announcement today that it has been unable to access the information it requires from Bumi Resources, its 29.2%-owned associate company, fully to investigate claims of widespread embezzlement. This is a surrender on the part of the Bumi PLC Board, which has not fully pursued or exhausted the legal and the practical options which should be available to it as Bumi Resources' principal shareholder to seek to compel disclosure. Bumi PLC's position on this point is doubly unacceptable, since certain PLC Board members are central to any proper investigation of what went on at Bumi Resources.
The Company acknowledges that it has made better progress in investigating financial impropriety at Berau, but stops short of disclosing what Macfarlanes has uncovered. Today's statement also hints that it might not pursue lines in inquiry relating to Berau, since to do so might carry "associated costs and risks". Without further explanation, this position is again unacceptable - not least since it comes from a Board some of whose members are potentially implicated in the wrongdoing.
The overwhelming impression is that the Board has neither the will nor the wit for this task, but shareholders need not give up hope of recovering their money. We have written to the Company on behalf of minority investors demanding that Bumi PLC produce an uncensored copy of the final Macfarlanes report, all communications between the Company and Macfarlanes relating to the form and content of the report, and all information relating to the public disclosure of material from the investigation. In order to restore public and investor confidence in the integrity of the investigation, NRI has also suggested that Bumi PLC, in consultation with minority investors, appoints a suitably senior independent lawyer to review expeditiously all relevant matters pertaining to the investigation and report.
It is impossible for a Board chaired by Samin Tan, the Bakries' concert party associate, to sit in judgement on the activities of the Bakries, Tan and their associates.
The issue of the Chairman's role is barely mentioned in today's announcement from Bumi PLC, but the evidence submitted to Macfarlanes should have presented him with more than enough questions to warrant his immediate resignation. The document leaked to Nat Rothschild by a whistleblower in September 2012 and passed by him to the Board was a due diligence report commissioned by Samin Tan before he invested in Bumi. The report refers to numerous related party transactions at Bumi Resources and Berau used apparently as means of diverting funds from the Company. In other words, Samin Tan knew about financial irregularities involving the Bumi PLC group before he joined the Board, yet in his role as Chairman did nothing about it. This calls into question compliance with his legal and fiduciary duties as a UK PLC Director.
What is more, destruction of shareholder value at Bumi appears to have increased after Samin Tan joined the Board:
· On the day of his appointment the Bumi PLC share price was 697 pence. Yesterday it was 331 pence, a fall of 53 per cent while Bumi PLC was under Samin Tan's Chairmanship
· Under his Chairmanship of Bumi PLC and as President Commissioner of Bumi Resources, a 30% stake in the infrastructure assets were transferred in June 2012 for $1 from Bumi Resources to Tata Power. Samin Tan personally authorized this transfer of assets
· On two occasions in May and October 2012 Samin Tan, as President Director of Bumi Resources Minerals, extended loans of $110million via UOB bank to Bakrie entities collateralised against part of the December 2010 Bumi Resources Minerals IPO proceeds
· At the Bumi PLC AGM in May, Samin Tan gave the impression that he had installed his people to positions of influence at Bumi Resources and Berau. The reality is that his people had been side-lined by Bakrie and Roeslani, and had little if any influence in the day to day management of these entities. He also failed to investigate claims made by his recently installed CFO at Bumi Resources, Stefan White, regarding financial irregularities in relation to capital expenditure at the Pendopo coal project
· Samin Tan had full knowledge, but did nothing about, the Chateau $75million "investment", the non-commercial marketing agreements at Berau, and the Velodrome consulting agreement (paying some $2m a month for undefined consultancy services), all revealed in the whistleblower documentation
· Samin Tan failed to disclose an arrangement that he had agreed with the Bakries, whereby any "leakage" from the group companies to Bakrie entities would be restructured so that Tan was not disadvantaged. However, their arrangement did not extend to the minority shareholders of Bumi PLC and Bumi Resources.
Bumi PLC is in possession of substantial evidence to verify these claims, much of which is already in the public domain. Under Samin Tan's leadership, the Company appears not to be actively investigating.
The decision not to disclose details of the Macfarlanes report and the admissibility of evidence
The Company claims that it is unable to substantiate many allegations of financial and other irregularities owing to a lack of access to the original source of the materials provided to the Company (the whistleblower). The Company further claims that it is unable to release the detail of the Macfarlanes report due to the unacceptable legal risks that exist (primarily in Indonesia) as a result of the undisclosed provenance of these materials and that, allegedly, the materials were obtained illegally through email hacking.
We are inviting the Company to advise precisely which Indonesian laws it believes prevent it from publishing any part of the Report, but as the initial recipient of the whistleblower's evidence, Nat Rothschild has a duty of care to protect the whistleblower's anonymity, as enshrined in Lord Woolf's 2008 report into business ethics. The same whistleblower protection, and fundamental public interest in finding out what happened to missing shareholder funds, more than justifies the evidence (and its publication) under UK law.
The key whistleblower document, as mentioned above, is a due diligence report that Samin Tan himself commissioned before investing in Bumi, and which appears to provides detail of financial and other irregularities, including the diverting of shareholder funds through numerous related party transactions. In the spirit of cooperating fully with the Macfarlanes investigation, Mr Tan should provide shareholders with a copy of this report immediately.
As also mentioned above, we are also calling on Bumi PLC to put the Macfarlanes report in the hands of a legal expert who will be able to reassure investors by taking an independent view as to the admissibility of the evidence and the findings, and to what extent they can be published.
It is worth noting, in the meantime, that Bumi PLC's reluctance to publish the Macfarlanes report is even less justifiable given that the Company has anyway been selectively leaking the report's findings over recent weeks, as only a cursory glance at recent press coverage amply proves. To that extent, the Company's attack on Nat Rothschild today for allegedly leaking evidence is hypocritical, as well as a further attempt to distract investors from the central issue - namely the misappropriation of shareholders' funds.
Any suggestion from Bumi's Directors that Nat Rothschild is to blame for the transgressions that have occurred in Bumi PLC brings buck-passing to a new level. Today's speculation from Bumi PLC that the UK Takeover Panel might somehow hold Nat responsible for the undeclared concert-party activities of Tan and the Bakries - rather than Tan and the Bakries themselves - is the height of absurdity. Nat has worked tirelessly to highlight embezzlement at Bumi, and the Macfarlanes investigation would not have happened without him.
As soon as he became aware of financial irregularities at Bumi PLC in November 20101, Nat made the Board and the investing public aware of his concerns. He has also expressed regret at going into business with the Bakries in the first place.
In contrast, other founders of the Company - notably Julian Horn-Smith and Lord Renwick - have never admitted they were at fault. Lord Renwick was vice-chairman of JP Morgan Cazenove, which advised on the formation of Bumi PLC in November 2010, having already brought Berau to public markets earlier in 2010 - and which earned more than $30m in fees for its advisory work, which was supposed to include due diligence.
Julian Horn-Smith, meanwhile, chaired Vallar at the time Bumi PLC was put together. Contrary to the suggestion made by the Company in today's announcement, it was the Vallar Board led by Julian Horn-Smith that approved Bumi PLC's formation, not Vallar Advisers.
Absurdly, Lord Renwick and Julian Horn-Smith both still sit on the Board of Bumi PLC, and neither has ever condemned the Bakries. The folly of their position is glaringly illustrated by today's findings.
Statement by Long Haul Holdings and the Bakrie Group of Companies
We note the statement issued by the Bakrie interests this afternoon. It is tempting to comment on the irony of their claim that they have "co-operated with the Macfarlanes report" when even the very limited statement issued by Bumi PLC today makes clear that it was unable to access key information relating to the Bakrie-controlled Bumi Resources. However, all parties agree that the key priority for Bumi PLC is to dissolve the Bakries' involvement in the Company, and their opinions on other matters can safely be ignored.
The Bakries' threat to remain in occupation of the Bumi PLC register if they do not get their way is juvenile in the extreme. As we have pointed out before, threatening minority shareholders is not the right way to win their support in a British proxy vote - particularly when the Bakries' shares in the PLC are, in any case, held as security against their debts by their lenders.
It is well known that the Bakries have significant outstanding borrowings, and owe $550m against their Bumi PLC shares. Their creditors will decide what happens to their shares, and we look forward to negotiating with those creditors in due course.|
|craffert: big reputations at stake here. I can see Nat or the Bakries both desperate to rebuild reputations which means shareholders getting some sort of return on their £10 a share investment. With coal prices rebounding and the assets worth more than the share price, there is room for a fundable bid which ends this sorry mess. A great opportunity for the vulture and hedge funds to get on the share register and become kingmakers in any deal.|
Freshfields could face scrutiny over advice on 2010 Bumi deal
4 January 2013 | By James Swift
Freshfields Bruckhaus Deringer could be dragged into an investigation of the deal that created the controversial multibillion coal group Bumi.
Bumi's Indonesian investors and its co-founder Nat Rothschild, who helped bring the company to London, have been locked in a vicious and public dispute over governance of the company since the autumn of 2012. In September, Macfarlanes was brought in to look at alleged financial irregularities at Indonesian subsidiary PT Bumi Resources amidst a drop in the company's share price.
Following a request from Bumi, the UK Takeover Panel looked into the 2010 deal that created the company. In its December report, the panel found that Indonesian investors the Bakrie family and Rosan Roeslani (through his company Bukit Mutiara) were acting in concert when their coal companies combined with Vallar - which later became Bumi - and so must cap the voting rights on their combined 57 per cent stake to under 30 per cent.
Under Takeover Panel rules, investors owning 30 per cent or more of a company must, subject to a waiver, make a general offer for the whole of the company.
The Takeover Panel added that it is separately "undertaking an investigation into why it was not previously made aware of the existence of the concert party, and why a Rule 9 waiver was not sought in relation to the transactions".
It is a move that could bring Freshfields, which acted as legal adviser to Vallar at the time with corporate partner Julian Makin leading a team including partners Ben Spiers, Stephen Hewes and Claire Wills, into the spotlight. Following the report by the Takeover Panel, the Bakrie brothers have been quoted in the national press as blaming Rothschild for failing to disclose the relationship. A source close to Nat Rothschild's NR Investments, however, is reported to have said that the board of Vallar "approved the acquisition in November 2010, on the basis of advice from its legal and financial advisers, who led all interactions with the Takeover Panel on behalf of the Vallar plc board ... [which] was not made aware of any concert party issues."
A source close to the case told The Lawyer that it was likely that the financial advisers would come under more scrutiny than the legal advisers. Vallar's financial adviser for the 2010 deal was JPMorgan. Freshfields declined to comment.
The news comes as the shareholder war at Bumi continues to rage, with the Bakrie brothers and Rothschild submitting their own plans to shareholders as to how the collaboration should be unwound. Berwin Leighton Paisner (BLP) and Clifford Chance have taken key advisory roles on this.
BLP litigation partner Graham Shear, corporate finance partner Benjamin Lee and Singapore head Alistair Duffield are all understood to be advising Indonesian family the Bakrie Brothers, who own 23.8 per cent of Bumi.
BLP is advising Bakrie & Brothers on its general strategy, as well as on regulatory and contentious matters. The firm is also advising the company on its proposals to sell its stake in Bumi in return for several key mines, and on questions from the UK Takeover Panel.
Freshfields partner Hewes, meanwhile, is understood to still be advising Bumi on current matters, while Clifford Chance partners Jeremy Sandelson and Roger Leese are acting for Bumi Resources. Gibson Dunn & Crutcher is understood to be advising Nat Rothschild, though the firm would not comment on which partners are acting.|
|chesty1: Bumi financial irregularities could run over $500m
OK so it has depressed the share price BUT if they look into it & can go through the courts & get this money back then the share price will show it....
Market held up well considering & also could hardly buy any all day long, managed to pick up 5k's worth in various smaller trades.
Lets see what the rest of the week brings.|
Bumi share price data is direct from the London Stock Exchange