Bumi Proposes Separation From Bakrie Family

JAKARTA--London-listed coal company Bumi PLC (BUMI.LN) has proposed the company's separation from Indonesia's influential Bakrie family after months of wait, setting a shareholder vote for Dec. 4.

The company said in a press release dated Thursday that shareholders would vote to sell a 29.2% stake in one of Indonesia's largest coal companies, the Bakries' flagship entity PT Bumi Resources (BUMI.JK), for $501 million, thus ending a relationship with the Bakries that went sour over issues of corporate governance.

The company also said it is initiating arbitration proceedings against Rosan Roeslani, former director of Bumi PLC's PT Berau Coal (BRAU.JK), for missing a deadline in September to make an initial payment of $30 million in money he owes the company. Mr. Roeslani earlier this year agreed to repay Bumi $173 million in cash and assets for money that disappeared during his time at the Indonesian-listed subsidiary.

Mr. Roeslani declined to comment when contacted Friday.

Under the terms of the separation, an entity controlled by Samin Tan, Bumi PLC's outgoing chairman, would pay $223 million to acquire the Bakries' remaining minority stake in Bumi PLC, leaving Mr. Tan in control of almost half of the London company.

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