LONDON--Financier Nathaniel Rothschild, one of the founders of
embattled U.K.-listed Bumi PLC (BUMI.LN), said Monday he has
resigned with immediate effect from the Indonesian coal miner's
board, citing loss of confidence in the chairman and the board.
His resignation comes at a time when Bumi's board is considering
a proposal made by the powerful Indonesian Bakrie family that aims
to severe the family's ties with the company, following a
tumultuous period in which the company's shares have fallen more
than 70% since the beginning of the year.
The Bakrie Group, which is run by the powerful Bakrie family,
has asked to exit the troubled venture that it had built with Mr.
Rothschild by offering to give up its 23.8% stake in Bumi and pay
about $1.2 billion for Bumi's mines. The proposed breakup would
leave Bumi with no assets other than the cash from the deal and
return control of some of Indonesia's most productive mines to the
Bakrie Group.
Mr. Rothschild, the 40-year-old scion of a European banking
dynasty, said in a resignation letter to Bumi's chairman Samin Tan
that the chairman appeared "determined to drive through the
Bakries' proposal" before the completion of the independent probe,
a move that he said would be a "disgrace" to even contemplate
without first concluding the probe.
He said that Mr. Tan was "not trying to protect the interests of
minority shareholders. Rather, I believe that you are complicit in
their oppression."
Mr. Tan wasn't immediately available for comment.
"These are clearly the personal views of Mr Rothschild," said
Bumi's head of corporate affairs in an emailed statement. He said
Bumi's independent directors are unanimous in their support that
the Bakrie proposal regarding separation should be reviewed
although no view has been formed on value. He added that the
independent directors have appointed the Rothschild bank to advise
them on the proposal put forward. Mr. Nathaniel Rothschild is a
member of the family that gave the bank its name.
Mr. Rothschild said he remains determined to fight for the
company's investors and believes he can do a better job from
outside the company than from within. He said that was a matter of
great regret for him that he was party to bringing the Bakrie
family to London.
Chris Fong, spokesman and senior vice president for the Bakrie
Group said in reaction to Mr. Rothschild's resignation and
accusations the Bakrie Group "will pursue to the full extent of the
law the allegations that have been presented to us."
He added that the Bakrie group hopes that Mr. Rothschild, which
owns 11.9% of Bumi's shares, will return all the shares and other
benefits that had been awarded to him as part of the original deal
with the Bakrie family.
-Write to Alex MacDonald at alex.macdonald@dowjones.com
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