Bumi Resources directors quit ahead of Bakrie exit

INDONESIA'S biggest coal exporter, PT Bumi Resources, said 10 directors resigned as the company's largest shareholder works to disconnect itself from the Bakrie Group and PT Bumi.

Bumi Plc chairman Samin Tan quit as president commissioner of Jakarta-based Bumi Resources, according to a statement on Wednesday.

Alexander Ramlie, Scott Merrillees, Kenneth Allan and Edison Mawikere were among other board members to resign, it said.

Bumi Plc, founded by Nathaniel Rothschild and the Bakrie family, is pushing ahead with the separation plan after last month defeating an attempt by Rothschild to take control of Bumi Plc's board. The Bakries have proposed exchanging their 23.8 per cent of Bumi Plc for 29.2 per cent of Bumi Resources in a cash and share swap deal, leaving Bumi Plc in control of PT Berau Coal Energy.

"It appears the separation of Bumi Resources/Bakrie from Bumi Plc/ Berau is progressing," Riaz Hyder an analyst at Macquarie Group Ltd said by e-mail. That "should ultimately be beneficial for both groups focusing on their respective coal assets".

Veronica Tampubolon, Eva Tarigan, Nenie Afwani, John Slack and Stefan White also resigned, Bumi Resources said in the statement.

Bumi Plc is aiming to make progress on the Bakrie separation in a few weeks, chief executive officer Nick Von Schirnding said on Thursday. The company and the Bakries are starting a sales and purchase agreement, he said.

"Restructuring of the board is on the way, we have commissioned an independent search firm to find a new independent chairman," Von Schirnding said.

The company has received a US$50 million (RM155.5 million) deposit from the Bakrie Group as part of the deal.

Tan also resigned this week as president director of PT Bumi Resources Minerals. Kenneth Allan also quit as director of Bumi Minerals, the unit said. Bloomberg