(Corrects ARM stake figure in fifth paragraph to 24 percent
from 30 percent)
LONDON Jan 20 Coal miner Asia Resource Minerals
(ARM) agreed on Monday to give the influential Bakrie
family four more weeks to fulfil requirements for a split from
the company, delaying once more a much-needed step for the
Indonesia-focused ARM, previously known as Bumi Plc., has
been hit by shareholder battles, allegations of wrongdoing and
falling coal prices in the past few years.
In a bid to revive the London-listed company, shareholders
voted to split with the Bakrie family that co-founded it.
The Bakrie family now have until 21 February to enable the
long-awaited split or lose the $50 million they have already
committed to the process.
Under a complex separation deal, the Bakrie family is to
sell its ARM stake of 24 percent for $223 million to outgoing
chairman Samin Tan - who in turn would become the single largest
shareholder, with 47.6 percent.
The plan then is for the Bakries to use the sale income plus
additional cash of about $228 million to buy back a 29 percent
stake in Indonesian miner PT Bumi Resources which is
currently held by ARM.
ARM has already twice this month granted the Bakries extra
time to complete the deal, which originally had a final deadline
of Jan 24.
Now the Bakries have until 21 February.
Given the repeated requests for an extension, some
shareholders have expressed concern that the Bakries might have
difficulties in financing the cash portion of the deal. The
family has paid a $50 million non-refundable deposit.
"There is no such thing as a risk-free transactions but you
have got a $50 million non-refundable deposit so I suspect the
Bakries have to find a way to complete this one way or the
other," said one company shareholder who asked not to be named.
"I believe incentives are what drive any company so, you
figure a 10 percent deposit is a pretty big incentive to
complete the transaction."
The Bakries founded Bumi Plc. in 2010 together with Nat
Rothschild, with the aim of bringing promising Indonesian coal
assets to London investors, but their relationship soured
The company's shares have lost about three quarters of their
value since listing, and were trading around at 234.50 sterling
pence on Monday.
A spokesman for the Bakrie Group declined to comment.
(Reporting by Silvia Antonioli and Stephen Eisenhammer; Editing
by Sophie Walker and Anthony Barker)