12th Jun 2014 09:55
LONDON (Alliance News) - Asia Resource Minerals PLC Thursday said Chief Executive Nick von Schirnding will be succeeded by Independent Non-Executive Director Amir Sambodo on June 28, after the company, formerly called Bumi PLC, decided that the CEO role now needs to be based in Indonesia.
Von Schirnding oversaw the Indonesian thermal coal mining company's split from the Bakrie Group in March, after a long and acrimonious divorce.
Last month Asia Resource Minerals returned USD465 million to shareholders after committing to return at least USD400 million at the time of the split.
However, it said it wouldn't distribute shares in operating subsidiary PT Berau in specie to shareholders, after major shareholders, including RACL and Borneo, had called for it to distribute in specie shares on the basis that they believed the simplified ownership would ultimately remove the need for a London-based management team and listed vehicle, thereby reducing costs, increasing shareholder value and potentially allowing a distribution of cash in excess of USD500 million. Asia Resource said it had consulted with more shareholders and didn't believe it had consensus for the move for the time being.
"The Board of ARMS would like to thank Nick for the results he has delivered in very difficult circumstances, bringing shareholders together and helping complete the separation transaction. In addition, during his time as CEO, Nick has improved financial and governance controls at Berau, put in place a new management team, and made substantial progress with a cost reduction strategy," Asia Resource Minerals said in a statement.
"When I took over as CEO at the end of 2012, the Company needed an urgent and substantial overhaul - that job is now done. Value destruction has been addressed and a solid platform has been built for sustained value creation. I thank the board of directors and my management team for their support," von Schirnding said.
Sambodo said he will continue cutting costs and making operational improvements at Berau, which is the fifth-largest coal producer in Indonesia.
Asia Resource Minerals shares were down 0.1% at 190.25 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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