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London. The
Bakrie family and its shareholder partner in Bumi Plc are seeking to oust
financier Nathaniel Rothschild and other key directors from the board of the
London-listed coal miner.
The Bakries
sold a stake in Bumi Plc in November to a group backed by businessman Samin Tan
to extricate themselves from a debt crunch.
In a
surprise statement on Friday, the Bakrie family and Tan, who now together own a
29 percent voting stake in Bumi Plc, announced they were seeking greater
representation — demanding a shareholder meeting to replace not only
Rothschild, the erstwhile partner and current chairman, but four other
directors.
The
request, which arrived at Bumi Plc’s headquarters late on Thursday, sparked
fresh speculation over deteriorating relations between Rothschild and the
Bakries and sent shares down 4.5 percent to 850 pence on Friday.
The Bakries
and Tan are demanding the replacement of Ari Hudaya, who is also chief
executive of part-owned, Jakarta-listed miner Bumi Resources, by Bakrie family
lieutenant Nalinkant Rathod.
Andrew
Beckham, chief financial officer, would also be replaced. If the changes are
approved by shareholders at the general meeting, to be held within the next two
months, Samin Tan would become chairman under the new structure, with Indra
Bakrie as co-chairman. Indra Bakrie is regarded as the business head of the
multi-billion dollar Bakrie family conglomerate.
Other
directors who would leave if the changes are approved include the former
Anglo-American head of coal, James Campbell, one of Rothschild’s first partners
in his coal venture.
“This is
not about personal relations,” a Bakrie spokesman said, brushing off talk of a
deepening rift between Rothschild and his one-time partners. “This is about the
best board structure for what is a listed company.”
Under the
new structure, the executive roles are expected to be based in London, two
sources familiar with the matter said, in a bid to improve visibility and
relations with institutional shareholders. Last year, Rothschild, who owns just
under 12 percent of Bumi Plc, called for a “radical cleaning up” of corporate
governance at miner Bumi Resources, an affiliate of Bumi Plc, in a show of
frustration with his Indonesian partners.
Reuters
 |
| British financier Nathaniel Rothschild, left, has criticized the management and corporate governance at Bumi Resources, the Indonesian coal company he is trying to transform into a top-tier global miner, the Financial Times reported on Thursday. (Antara Photo/File) |
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