Bumi Share Discussion Threads

[stuart14] 12/12/2012 15:12

Clear as mud!

[stuart14] 12/12/2012 09:33

It doesn't sound like there were doing anything new, and will probably get away with it. Selling assets at knockdown prices to companies they own either publically or via investment trusts etc. The East is the Wild West these days.

My hope is the board meeting today concludes with a value for NR's investmenr proposal and that the Bakries have to significantly up their offer to stay in contention.

[flyfisher] 12/12/2012 09:02

This article mentions the chateau investment made by roeslani , at berau coal .
The accounts of berau show a $70m investment in chateau asean investment fund with a 2.5% per quarter management charge , the investment fund morphed into an investment in a single company to do with coal washing technology , it has since been heavily written down in berau accounts and written off in the plc accounts.

[stuart14] 11/12/2012 08:49

Can Bumi really keep the coal assets and dump the 3 wise men from Indonesia and expect success though?

I don't see how that works. OK they'd no longer be on BUMI PLC's board or shareholder register, but wouldn't they still own sizeable chunks of the actual assets?

[craffert] 10/12/2012 23:13

some interesting news tonight. Undervalued assets plus big egos = bidding war to commence

[hightower3] 10/12/2012 18:06

Bumi Plc. shareholders join forces to keep Berau
Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Mon, December 10 2012, 9:55 AM
A- A A+

Paper Edition | Page: 13

The minority shareholders of Bumi Plc., including Nathaniel Rothschild, will try to maintain the company's existence and listing on the London Stock Exchange (LSE) by blocking the Bakrie Group's plans to take over one of its main assets, Jakarta-listed PT Berau Coal Energy, according to a source familiar with the matter.

Six existing minority shareholders holding combined voting rights of around 50 percent have agreed to keep Berau in Bumi Plc., the source said. The shareholders are co-founder Rothschild, Schroder Investment Management Ltd., Standard Life Investments, the Abu Dhabi Investment Council (ADIC), Artemis Investment Management LLP and Taube Hodson Stonex Partners LLP.

"[The shareholders] only need 25 percent to block the Bakrie deal, as it is a class 1 transaction under UK law," the source said.

According to Bumi Plc.'s annual report from 2011, the largest voting rights holder is PT Borneo Lumbung Energi & Metal, with 29.99 percent, followed by PT Bukit Mutiara with 13.11 percent, Rothschild with 11.92 percent, BlackRock Inc. with 6.36 percent, ADIC with 4.15 percent, Schroder with 3.99 percent and Taube Hodson with 3.16 percent. No details were available for the stakes held by Standard Life or Artemis.

Bumi Plc., through an appointed advisor, is reviewing the Bakrie Group's three-stage proposal submitted in October to swap its ownership and take over the company's main assets, PT Bumi Resources and Berau, the two main players in Indonesia's coal industry.

The source said that the minority shareholders were not interested in keeping Bumi Plc.'s shares in debt-ridden PT Bumi Resources, preferring to retain Berau instead.

Following the offer, Rothschild - whose relationship with the Bakrie Group has deteriorated since they agreed in 2010 to develop Bumi Plc. - submitted an alternative proposal to the board, declining to reveal the contents.

Rothschild said that he wanted to maintain Bumi Plc.'s premium listing on the LSE and to keep Berau.

"Shareholders want to maintain Bumi Plc.'s listing and ownership of Berau without any further involvement of Bakrie, [Rosan] Roeslani and especially [Samin] Tan," Rothschild said in an email to The Jakarta Post on Sunday.

Rosan is currently one of Bumi Plc's non-executive directors and the chairman of PT Recapital Advisors, which through Bukit Mutiara holds a 10 percent stake in Bumi Plc. He said recently that his Recapital would likely lose its voting rights if the UK takeover panel found that it was associated with the Bakrie Group and Borneo.

Samin Tan has been serving as Bumi Plc.'s chairman since March, after Borneo purchased half of a 47.6 percent stake in Bumi Plc. from the Bakrie Group for US$1 billion. Instead of holding the ownership separately, the Bakrie Group and Borneo formed two special purposes vehicles to retain their ownership in Bumi Plc.

Bakrie Group senior vice president Christopher K. Fong said that while the group didn't want to speculate on how shareholders would vote, he remained positive about the results.

"We expect PT Bumi Resources will remain a part of Bakrie. If a competitive bid for Berau Coal is submitted, then we would imagine it would need to be a substantial offer to meet the expectations of all shareholders. Our intention is for Indonesian control over these assets. We hope that this expectation is realized," Fong said.

[flyfisher] 10/12/2012 17:39

An excellent article from the telegraph.



Given that this transaction occurred before the rothschild aquisition , it serves to highlight the incredible lack of due diligence by the rothschild aquiring team .

Todays FT has an article in which sofaer capital call for the resignation of the entire board , ' as they lack any credibility ' .

[stuart14] 09/12/2012 11:07

Thanks guys. Next week could be interesting!

[flyfisher] 09/12/2012 08:47

stuart14 - The ft ask readers not to cut and paste articles . It is free to register for the online edition . The article gave little further information.

[stuart14] 08/12/2012 15:38

Can you cut and paste it?

[flyfisher] 08/12/2012 12:32

F.T. comment on bakrie resignation , gives news of rothschild trying to bring in a north american pension fund.

[stuart14] 07/12/2012 11:51

Would guess this actual offer will become public soon.

Hopefully a sensible offer will mean the current board agree to drop the investigation, it is clear the Bakries have a few dodgey deals going on imho- what is the point in trying to stay in bed with them

[ashthorpedo] 07/12/2012 11:50

Bumi Co-Chairman Indra Bakrie Resigns With Immediate Effect.
I wonder are the Bakries ready to make their next move.

[stuart14] 07/12/2012 11:49

Oooohhh

For Immediate Release

Resignation of Director

Bumi plc ("Bumi") announces that Indra Bakrie, a director and co-chairman of
Bumi, has resigned with immediate effect.

In his letter to the Bumi board of directors Mr Bakrie stated that because the
initial objective of the Bakrie Group in pursuing a London listing had not been
met, the Bakrie Group had submitted a proposal ("the Bakrie Proposal") to exit
from Bumi. It was therefore appropriate that he resigned as a director of the
company, the letter said.

Bumi announced the terms of the Bakrie Proposal on 11 October 2012.

[p@] 06/12/2012 14:57

But it doesn't solve the problem of the infrastructure.


Both Indonesia's financial regulator, Bapepam, and law firm Macfarlanes are examining the ownership of crucial coal mining infrastructure sold out of Bumi Resources prior to the London-listed Bumi acquiring a 29pc stake in the Bakrie-controlled company in June 2011.
Investigators are examining whether the sale of 70pc stakes in two companies that own ports, conveyors and crushers vital to the operation of Bumi Resources' mines were cut-price, undisclosed "related-party transactions" involving the Bakries.

[ashthorpedo] 06/12/2012 14:46

Spreadbet magazine seems to think that Glasenberg is about to enter the fray here. Now that would be a nice xmas present.

[stuart14] 30/11/2012 08:54

Lots of news from Indonesia over night saying BUMI back in profit and the Bakries will remain in charge.

Whatever happens, as long as the share price goes up i don't mind!

[stuart14] 27/11/2012 16:36

This is all getting very interested. Well, everything except the share price!

[foureyes3] 27/11/2012 12:22

Bakries filling their war chest to win Bumi battle

[ashthorpedo] 26/11/2012 11:30

Here is spreadbet magazine's updated blog from yesterday.



I don't know how this will play out but I can't see Tan accepting £4 a share from Nat when he paid £11.

I liked this bit from the article.

"The most interesting element of this whole saga from an event risk play perspective however is that plainly, both the Bakries and Rothschild and also Tan, believe the holdings in PT Bumi and Berau to be worth meaningfully in excess of the current price otherwise why else would you look to buy the holdings?"

[cl2201] 26/11/2012 10:49

Stuart14 - I think what Rothschild is planning is essentially just to raise cash from new investors (that he has on board already) in the hope of buying out Tan and other 'toxic' investors. Apparently, Rothschild supports the Bakries' buyout of Bumi Plc's stake in Bumi Res. and the cancellation of their Bumi Plc shares. But it's the purchase of Bureau PT that he opposes.

Anyway, in essence, the Times article is probably just a re-hash of the news last week.