Bumi reaches agreement on terms of split from Bakrie family

Tue Feb 12, 2013 12:45pm EST

Feb 12 (Reuters) - Bumi Plc said it had agreed a deal that would allow Indonesia's Bakrie Group to unwind its interest in the London-listed coal miner in exchange for Bumi's stake in Asia's biggest thermal coal exporter, PT Bumi Resources .

Under the deal, the Bakrie Group will cancel its indirect 23.8 percent stake in Bumi Plc in exchange for the 10.3 percent owned by Bumi Plc in PT Bumi Resources.

Bumi Plc would also sell the remaining 18.9 percent stake it holds in Bumi Resources to the Bakrie Group for $278 million.

The Bakries joined financier Nat Rothschild in 2010 to bring its Indonesian coal assets to the London market by merging them with Vallar, Rothschild's listed investment vehicle, and renaming it Bumi Plc.

But the share price has plunged since then. Falling coal prices, an investigation into allegations of financial wrongdoing and the shareholder battles added to the company's woes.

The Bakries said last year they planned to unwind their interests in the company, taking back the assets they and partners brought to Bumi Plc.

Meanwhile, Rothschild wants to remove at least 12 of the company's 14 directors and bring in a new board.

Shareholders are due to vote on Rothschild's proposals at a special meeting in London on Feb. 21.

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