LONDON-- Asia Resource Minerals PLC on Tuesday completed its
$501 million separation from the Bakrie Group, bringing an apparent
end to a long-running corporate governance saga at the
controversial Indonesian coal miner.
The deal, originally agreed to in December, will see Asia
Resource Minerals--formerly known as Bumi PLC--sell its 29.2% stake
in PT Bumi Resources TBk to the Bakrie Group, the investment
vehicle for one of Indonesia's most prominent families. The deal
has been postponed several times since January to allow the Bakries
time to raise the necessary funds.
As part of the deal, Asia Resource Minerals chairman Samin Tan
has doubled his 23.8% stake in the company by acquiring the Bakrie
Group's stake in the London-listed venture.
Asia Resource Minerals was formed in 2011 under the Bumi name,
after the Bakrie family folded its coal assets into a shell company
created by European financier Nathaniel Rothschild.
The venture subsequently suffered from boardroom rifts between
Mr. Rothschild and the Bakries, falling coal prices and an
investigation into alleged financial irregularities at its
Indonesian coal assets. The company's share price has fallen 80%
since its 2011 peak.
The public rows at Asia Resource Minerals have led to criticism
that London has become too open to listings of emerging market
resource companies. Last year Kazakh mining company Eurasian
Natural Resources Corp. was delisted and taken private by its
owners, whilst minority shareholders in India's Essar Energy have
this year objected to its owners' offer to take the company
private.
Asia Resource Minerals' CEO Nick von Schirnding said the company
would now focus on turning around its remaining asset, an 85% stake
in Indonesia's fifth largest thermal coal producer, PT Berau Coal
Energy TBk, largely through cost-cutting measures.
Long-suffering minority shareholders welcomed the deal's
closure. But two shareholders who didn't wish to be named called
for the company to consider exiting Indonesia by either
distributing Berau's Jakarta-listed shares to shareholders or
selling the entire stake for cash--an option Mr. von Schirnding
said the company would consider.
Asia Resource Minerals said it planned to return $400 million to
shareholders as a special dividend, though the timing is unclear.
Almost half of that amount will now go to Mr. Tan, who is set to be
replaced as chairman by Chris Walton, currently the company's
independent director. Mr. Rothschild, who owns around 16% of the
company, will also be a major beneficiary of the payout.
Ian Walker in London contributed to this article.
Write to Alex MacDonald at alex.macdonald@wsj.com
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