Bumi Share Discussion Threads

[hightower3] 15/1/2013 17:49

Rothschild ups stake in bid to remove Bumi board

Tue 15 Jan 2013
Rothschild ups stake in bid to remove Bumi board LONDON (SHARECAST) - Financier Nathaniel Rothschild has bought 16m pounds-worth of shares in Indonesian miner Bumi as he ups the ante ahead of a battle to overhaul the company's board.

The deal to buy 5.2m more shares raises Rothschild's voting stake from 14.8% to 18.2%.

Last week the Bumi co-founder called for a vote to replace 12 of the company's 14 board members and to reinstall himself as a director.

His long-standing complaint is the board has failed to protect the rights of minority shareholders.

Rothschild has the support of Bumi investors Taube Hodson Stonex Partners, Schroders and Sofaer Capital, who between them own 8.1% of the firm.

The company's Chairman, Samin Tan, who is also one of its biggest investors, said he would fly to London to convince investors the current board would best serve the company.

The company is currently waiting for the results of an investigation into "potential financial irregularities" at its Indonesian subsidiary, PT Bumi Resources.

MM

[strollingmolby] 15/1/2013 13:40

Fresh backing for Rothschild's Bumi plan

[strollingmolby] 15/1/2013 13:37

Bumi chairman tricked into releasing data

The bitter battle over the future of Bumi plc, the troubled London-listed Indonesian coal miner, has intensified after forensic computer experts concluded that the computer of the company's chairman, Samin Tan, was hacked and sensitive documents stolen.

A report commissioned by Mr Tan and Indonesia's influential Bakrie family, who together own 47.6 per cent of Bumi, said that he was "targeted in a sophisticated and persistent attack to compromise his computer and retrieve information" in July.

Sensitive documents and emails taken from his computer were later released in the public domain, according to the report by Context Information Security, a UK-based IT security company, which was first published by The Times and confirmed to be accurate by a Bakrie family spokesman.

After sending an investigator to Jakarta in November, Context concluded that a hacker posing as a Wikipedia representative and an employee of a Bumi subsidiary had tricked Mr Tan into clicking on links that downloaded malicious software on to his computer and allowed them to steal confidential documents.

[waldof] 11/1/2013 16:44

Big spike right at the end....Friday....Sunday papers.

[flyfisher] 09/1/2013 19:00

JAKARTA (IFT) – PT Berau Coal Energy Tbk (BRAU), coal mining company and subsidiary of Bumi Plc, plans to issue bonds in the first quarter of 2013 to use the call option from the bond issued in 2010. Roesan Perkasa Roslani, President Director of Berau, said that the company could conduct savings by using the call option in June, 2013, since the bond issued in 2010 had high interest. He explained that the 2010 bond matured in 2015, but had call option on June, 2013. "We are planning to issue a bond below US$ 500 million," he said.

According to Roesan, the tenure of the bond may be for five years, with expected interest rate below 7.5 percent. The issuance of bonds could also be used to decrease debt load, since the 2010 bond had interest of around 12.5 percent.

[tamboerskloof] 09/1/2013 17:18

500p would be OK, but I shall not be taking an exit, been with these too long for that.

[stuart14] 09/1/2013 16:13

Hope so. Will be very happy with an exit there.

[dmore2] 08/1/2013 11:31

this will get to 500p by the end of feb

[tamboerskloof] 08/1/2013 10:19

Looking as if I may break even soon been sitting on a loss for quite a while now, hopefully 400p in the next few weeks, I'm hopeful for the new year that this particular stock will come right, although coal prices are not helpful.GLA

[craffert] 08/1/2013 09:39

bum(i) fight about to kick off over these assets.

[stuart14] 08/1/2013 09:37

Hopefully the tide has turned here. Bring on that £4 mark!

[fidra] 08/1/2013 09:31

Good volume today so far.

[hvs] 06/1/2013 14:27

Course I am not, I aint a con man.

[tday] 05/1/2013 17:06

Is they all from OXBRIDGE! Well, hvs, you obviously aren't.

[hvs] 04/1/2013 14:34

Is they all from OXBRIDGE ????

[hightower3] 04/1/2013 13:33

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.
click here

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.

[strollingmolby] 27/12/2012 14:36

UK watchdog probes deal creating Bumi plc

By Helen Thomas and Anousha Sakoui

The UK's takeover watchdog has entered the controversy surrounding Bumi plc, capping the voting rights of the coal miner's key Indonesian shareholders and pledging to investigate the deal that created the London-listed group.

The Takeover Panel ruled that the influential Bakrie family and Bukit Mutiara, a company associated with businessman Rosan Roeslani, should have been regarded as a "concert party" in the 2010 deal which merged stakes in the Indonesian investors' coal companies into a cash shell, Vallar.

[craffert] 19/12/2012 22:10

those billions would be very welcome. Sloppy journalism.

[hightower3] 18/12/2012 09:51

Bakrie Asked to Complete Proposal
Tuesday, 18 December, 2012 | 15:34 WIB

TEMPO Interactive, Jakarta: The Bakrie Group is asked to complete a proposal that will be submitted to Bumi Plc's shareholders. Bumi Plc's Auditing Committee, Amir Sambodo, texted Tempo from London yesterday, saying that the Board has accepted (1a) and (1b) proposals from Bakrie. Amir, who is also an Independent Director of Bumi Plc, declined to explain the contents of the two proposals.

In a written statement on Bumi Plc's official site dated December 12, 2012, Bakri Group has delivered its proposal to swap 23.8 percent of its stake in Bumi Plc, with 10.3 percent stake in PT Bumi Resources-a lso controlled by Bumi Plc. The proposal was submitted through Long Haul.

Bakrie also requires a divestment through a cash purchase over the remainder owned by Bumi Plc (18.9 percent). For the purchase, Bakrie has offered to pay US$ 278 billion.

A spokesman for the Bakrie Group, Christopher K. Fong said that the Audit Committee for Bumi Plc will issue a decision on Berau Coal Energy.

If Bumi Resources is controlled by Bumi Plc, the latter will own Berau Coal Energy as an asset. "When the transaction is finalized, we will be delisted from the London stock exchange," he said.

Fong has also submitted a statement by Long Haul Holdings Ltd, Bakrie's entity which made the offer. He said that, Long Haul welcomes the statement issued by Bumi Plc's Board of Directors. "This is one step further in our efforts to execute our proposal on October 11, 2012, so that the Bakrie family will no longer be in Bumi Plc," he said.

Bakrie realizes that the establishment of Bumi Plc has caused great disappointment to shareholders, including the Bakrie Group. "We hope that Nathaniel Rothschild and his fellow founders of Bumi Plc will payout the US$ 16 billion bonus, which is considered a success fee for their role in Bumi Plc," Fong said.


FIONA PUTRI HASYIM | SETIAWAN

[hightower3] 16/12/2012 20:30

December 16, 2012 -- Updated December 17, 2012 01:39 HKT
ASEAN Market Preview, Bumi, Bakrie, Olam


China had a great day Friday and we are looking for that to spill over in to the ASEAN markets this week. There are still concerns regarding the USA and Europe but China data should be enough to turn sentiment in Asia.

On Friday Shanghai surged 4.3 percent to 2,150.63 after HSBC said China's manufacturing activity hit a 14-month high this month. It's another sign that the world's No. 2 economy is picking up.

Singapore rose 0.4 percent to 3,168.43. Thailand gained 0.4 percent to 1,358.50.

In Indonesia, fast moving consumer goods seller Unilever Indonesia rose 9.1 percent to Rp 22,200 after losing 22 percent over the previous two days, its biggest two-day drop since August 2000.

My 2 stand out buys this week are Bumi in Indonesia and Olam in Singapore.

As I predicted, the Bakrie family have been cashing up and they will take a run at taking full control at Bumi ( you heard it here first last week).

Bumi and Olam have had some bad press but they will be back, both rate as good buying at these low prices.

Overall this is a good buying week in Asia, stocks are trading at a discount as the childish game of poiltics in Europe andthe USA weigh on their own markets.

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

So be ready and buy the dips. America will raise the debt limit, it is not a great thing, but it will see a strong rally, my advice is to sell that rally.

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, that will bring more money to Asia.

2013-2015 is setting up to be ASEAN boom time

[hightower3] 15/12/2012 11:19

JakartaGlobe
Bakrie Makes Plans to Buy Back Bumi Resources
ID/Harso Kurniawan | December 15, 2012

The Bakrie Group plans to sell its entire ownership in coal miner and trader Fajar Bumi Sakti and would use proceeds from the sale to finance a proposal to buy back its crown jewel Bumi Resources from London-listed Bumi Plc.

According to a source with knowledge of the matter, the Bakrie Group plans to sell its entire 50 percent stake in Fajar Bumi and expects to raise $200 million to $300 million. The stockholding is valued at Rp 2.47 trillion ($256 million), based on the miner's market capitalization, which stood at Rp 13.09 trillion on Friday.

The fresh funds will be used to help finance its plan to buy back the 18.9 percent stake in Bumi Resources from Bumi Plc.

"There is already the potential buyer. The transaction will be done this year," the source said.

Fajar Bumi owns two coal mines in East Kalimantan in Loa Ulung, Tenggarong, and Desa Buluk Seng, Tabang. In Loa Ulung, Fajar Bumi, which oversees a concession area of 988 hectares, has proven coal reserves at 14 million metric tons. In the Tabang mine, which has a 4,955 concession area, reserves are estimated at 100 million tons.

In October, Bakrie put on the table a $1.2 billion offer to buy back the 29 percent ownership in Bumi Resources and the 85 percent stake in Berau Coal Energy, which is owned by Bumi Plc.

British financier Nathaniel Rothschild put forward an alternative proposal on Nov. 5, Bumi Plc said. In Rothschild's counter proposal, Bakrie-supporting shareholders would be bought out, while Bumi Plc would keep some coal assets, namely majority-owned Berau Coal. Rothschild claimed on Monday that investor support for his proposal to Bumi Plc had grown to include the top-five institutional shareholders and that he sealed commitments totaling $342.5 million, including $75 million from his own pocket.

However, Rothschild has not publicly disclosed the details of the proposal.

Chris Fong, a spokesman for Bakrie, said in an e-mail to Bloomberg on Thursday that the Bakrie Group expressed doubt that Rothschild had gained support for his proposal to unwind a $3 billion deal the financier and the Bakrie family forged two years ago, to create Bumi Plc.

After a board meeting on Wednesday, though, Bumi Plc said that the company was "working towards a transaction which separates the Bakrie Group from the company and divests the minority interest in Bumi Resources."

Additional reporting by Bloomberg

[hightower3] 15/12/2012 08:16

December 14, 2012 7:40 pm
Investors await next twist in Bumi saga

By John Aglionby

Investors in Bumi plc expected this to be a big week for the miner blighted by a vicious shareholder war over corporate governance at its Indonesian holdings. And this prediction proved correct – although not exactly as forecast.

Attention for weeks has been focused on a report by Macfarlanes into alleged financial irregularities at Bumi Resources and Berau Coal Energy, the Indonesian coal mining companies in which Bumi plc owns stakes of 29 per cent and 85 per cent respectively.

Investors hoped the board would release its findings into the two Jakarta-listed companies, and thus shed light on the business practices of Indonesia's powerful Bakrie family, which controls Bumi Resources and owns 23.8 per cent of the plc.

But no report emerged and the board said it was still unfinished. Conspiracy theorists were, however, satisfied by confirmation of Bakrie claims that information on which the report is based was obtained by theft or hacking emails and that some of the documents had then been doctored.

The directors also ensured that infighting will continue, probably for months, by rejecting a reorganisation proposal by financier Nat Rothschild, who founded Bumi in 2011, in favour of one the Bakries proposed.

An incensed Mr Rothschild has vowed to fight on to purge the company of its prominent Indonesian shareholders, including promising to replace the Bumi plc board if he proves triumphant.

The next step in the saga should – nothing can be guaranteed with Bumi – be determined by another player, the UK Takeover Panel, which is studying whether Bumi plc's Indonesian shareholders are concert parties. Analysts are giving up trying to predict the next twist.

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