Bumi chairman Tan has support to block Rothschild board bid

JAKARTA: Bumi Plc chairman Samin Tan said he has enough support to stop a bid by Nathaniel Rothschild to remove him and 11 other board members, amid a dispute for control of the coal company.

“We are talking to the key shareholders about supporting our program, our initiative and our strategy,” Tan said in an interview in Jakarta. “I truly believe we have enough support to stop Nat from reshuffling the board.”

London-listed Bumi Plc last week agreed to schedule a shareholder meeting next month after co-founder Rothschild called for a vote to oust 12 of 14 directors including Tan and chief executive officer Nick von Schirnding.

Rothschild is seeking to take control of the company, established with Indonesia’s Bakrie Family in 2010, after boardroom infighting and financial probes prompted moves by both groups to unwind their collaboration.

Tan has no intention “to stay any day longer” than needed and the board has agreed for him to remain until at least “this critical period is over,” he said.

He will wait until “all the noises are gone” before leaving his position, Tan said, without giving a specific time frame.

Rothschild, who holds about 14.7% of the voting rights of Bumi Plc, said Jan 7 that the current Bumi board has failed minority shareholders. He proposed to nominate former Leighton Holdings Ltd head Wallace King as chairman, Brock Gill as CEO and himself as an executive director.

Bumi Plc was founded by Rothschild and the Bakries - a family owned empire with investments in palm oil to property - in a US$3bil deal that grouped stakes in two Indonesian coal producers. Bumi’s assets include a 29% stake in PT Bumi Resources and an 85% holding in PT Berau Coal Energy.

Bumi Plc last month rejected a five-step plan from Rothschild regarding its coal assets. Rothschild made his proposal after the Bakrie Group in October offered US$1.2bil to buy all of Bumi’s producing assets.

The coal company is instead proposing to progress a US$430mil plan that would see it sever ties with the Bakrie family and exit its investment in Bumi Resources.

PT Borneo Lumbung Energi & Metal, one of Bumi Plc’s majority shareholders and controlled by Tan, said Dec 18 that it rejected a proposal from Rothschild to sell its stake in Bumi Plc and isn’t in any talks with the financier or his advisers regarding the proposal.

Tan said in November that Borneo Lumbung Energi & Metal and the Bakries were close to an agreement to end their joint venture that holds shares in Bumi Plc, freeing the Bakries to trade their stake in the coal company and exit.

“It is well under way,” Tan said yesterday referring to the separation deal. — Bloomberg