Bakries ditch Rothschild, start Bumi pullout

JAKARTA: The powerful Indonesian Bakrie family said yesterday it will start the process of divorcing from London-listed miner Bumi plc after winning a crucial shareholder vote over bitter rival Nathaniel Rothschild.

Shareholders shot down a proposal by Rothschild to regain control of the firm in an extraordinary meeting in London on Thursday, allowing the Bakries to follow through with their plan to exit the firm and keep their lucrative coal assets.

The Bakries and United Kingdom financier Rothschild have been embroiled in a fight for control of Bumi since soon after they set up the firm in 2011.

Rothschild had been hoping to replace 12 of the firm's 14 board members - and include himself in the new line-up - saying he had concerns about the way the family was running the business.

However, after winning the vote the Bakrie Group said it was "delighted" that the shareholders showed support for the current board, which last week agreed to allow the Bakries to divorce Bumi and buy its stake in Bumi Resources, the firm's crown jewel and Indonesia's largest thermal coal producer.

The Bakries now need shareholder approval to finalise their exit plan, which is expected to be a formality.

"We will restart the unwinding process today, and expect a resolution delivered to shareholders for approval as soon as possible," Bakrie Group spokesman Chris Fong said yesterday.

The board said it will now move on the plan by the Bakries to divorce Bumi by returning their 23.8 per cent stake in the firm in exchange for a 10.3 per cent stake in Bumi Resources. AFP