Indonesia's Bakrie close to finalising Asia Resource Minerals split
JAKARTA Feb 21 (Reuters) - Indonesia's Bakrie Group said it expected to complete its split from London-listed coal miner Asia Resource Minerals (ARMS) this month - a separation that been held up due to delays in fund raising.
Indonesia-focused ARMS, previously known as Bumi Plc, has struggled with shareholder battles, allegations of wrongdoing and falling coal prices in the last few years. To revive the company, shareholders voted to split with the influential Bakrie family that co-founded the business in 2010.
Under a deal in December, the Bakries agreed to sell their 23.8 percent stake in ARMS for $223 million. They will then use that income plus a $50 million deposit and an additional $228 million to buy ARMS's 29.2 percent stake in Jakarta-listed miner PT Bumi Resources, Asia's top thermal coal exporter.
ARMS said this month the Bakrie family had asked for a fourth extension to a deadline for completing a split from the company.
Bakrie Group spokesman Chris Fong said in a text message on Friday while that some the funds had been diverted for unrelated purposes, the group was now on track to complete the separation.
The Bakries founded Bumi Plc in 2010 together with investor Nat Rothschild, with the aim of bringing promising Indonesian coal assets to London investors, but their relationship soured.
ARMS shares have lost about three quarters of their value since their listing.
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