Wires

Bakrie family propose divorce from Bumi Plc

Share

LONDON, Oct 11 (Reuters) - Indonesia's powerful Bakriefamily have proposed a divorce with London coal miner Bumi Plc, the group they co-founded with financier NatRothschild, offering to take back the Indonesian assets theybrought in less than two years ago.

News on Thursday of the proposed split, which would leavethe London firm without operating assets, comes after months oftumbling prices and shareholder tension, and just weeks afterBumi Plc announced a probe into potential wrongdoing at itsIndonesian operations, including PT Bumi Resources ,the jewel in the Bakrie crown.

Bumi said in a statement that the Bakrie Group had offeredto cancel their indirect stake in the London-listed group,around 23.8 percent. In exchange, they would get 10.3 percent ofPT Bumi Resources, out of a stake of just over 29 percentcurrently held by the London firm. The Bakries would then buythe remaining 18.9 percent of shares for cash, before Christmas2012, the statement said.

The Bakries have also made a conditional proposal to buy outBumi Plc's 84.7 percent stake in PT Berau Coal Energy within thenext six months.

Bumi Plc said in a statement it was considering theproposals. There were no details on financing arrangements.

(Reporting by Clara Ferreira-Marques; editing by Sarah Young)

((clara.ferreira-marques@thomsonreuters.com)(+44 207 5423214)(Reuters Messaging:clara.ferreira-marques.thomsonreuters.com@reuters.net))

Keywords: BUMI/BAKRIES