25th Mar 2014 12:05
LONDON (Alliance News) - Asia Resource Minerals PLC Tuesday said it has completed its separation from Bakrie Group, effectively ending a year-long process to split up Nat Rothschild's former Indonesian thermal coal company Bumi PLC.
Asia Resource Minerals said it has now disposed of its 29.2% interest in Bumi Resources to the Bakrie Group for USD501 million, and RACL, a company owned by Asia Resource Minerals' current Chairman Samin Tan, has bought the Bakrie Group's entire 23.8% interest in the Asia Resource Minerals for a previously reported USD223 million.
As a result of the two payments being made, the two parties are now separated and Samin Tan, who has agreed to step down as chairman, is left with a 47.6% interest in Asia Resource Minerals. Financier Nat Rothschild remains the second largest shareholder in the company with a 20.81%, according to Morningstar.
"I am delighted to be able to announce that we have successfully completed the separation. It has been a long and difficult process, and we have overcome numerous challenges along the way to achieve a highly attractive outcome for our shareholders in the circumstances," Asia Resource Minerals Chief Executive Nick von Schirnding said in a statement.
Bumi was created three years ago as Nat Rothschild and the Indonesian Bakrie Group joined forces in an attempt to create one of the world's most powerful coal mining groups.
However, very soon the company was in turmoil as infighting among Rothschild, the Indonesian family business and independent board members, allegations of financial irregularities, and a fall in coal prices hit Bumi.
In December, shareholders of Bumi approved the separation of the company after a long power struggle, and it changed its name to Asia Resource Minerals.
Additionally, Asia Resource Minerals continues to be in conflict with former director Rosan Roeslani over cash and assets he may or may not owe the company. Roeslani, who is connected to the Bakrie Group, raised a number of issues in February related to a previously signed agreement over the repayment of USD173 million worth of funds to Bumi, stating that any outstanding liability to transfer cash or assets has been extinguished.
The company has waited patiently for completion of the deal after the Bakrie Group repeatedly extended the separation dates to be able to pay the funds required to complete the split. Last week, Asia Resource Minerals announced that it had received all the funds necessary to end the failed partnership.
Asia Resource Minerals said it believes that delivering separation from the Bakries and now being in a position to return at least USD400 million to shareholders is a significant achievement given the way the company was initially created, structured and operated.
Finally, the company said it is fully cooperating with regulatory investigations regarding Bumi's formation in 2010. It said it will continue to attempt to recover value for shareholders, in particular taking all appropriate actions against Roeslani with the appropriate authorities in the UK, Indonesia and other relevant jurisdictions.
Asia Resource Minerals shares were down 1.0% to 227.75 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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