Nat Rothschild gains institutional backing for Bumi restructuring bid

0
12

Renowned financier Nat Rothschild says he has secured the financial support of five powerful LP stakeholders in Bumi for his attempt to restructure the UK-listed mining company.

A total of 11 Bumi investors including the five largest – Abu Dhabi Investment Council, Schroders Investment Management, Standard Life Investments, Taube Hodson Stonex and Artmeis Investment Management – have commited to provide $342.5m of financing for the scheme, Rothschild has announced.

Rothschild sent a letter to the Bumi board last week informing them of the support for his proposal, which comes amid a bitter dispute with the Indonesian Bakrie family, a major shareholder in the company.

The family’s coal mining assets were combined with Rothschild’s Vallar company to create Bumi last year, but a steep drop-off in share price since then has caused friction between the camps.

The Bakries announced a $1.4bn bid to buy back their former operating assets in October, causing Rothschild to resign from the board to battle against the proposal.

Bumi director and co-chairman Indra Bakrie also resigned his positions, giving the reason that the Bakrie Group’s initial objective of pursuing a London listing had not been met.

The $342.5m equity commitment from investors includes Rothschild’s own pledge to put in $75m.

Copyright © 2012 AltAssets