Bumi agrees crucial funding for Bakrie split

TROUBLED miner Bumi last night moved a step closer to normalising the company as it agreed the first stage of the separation deal which would see Indonesian arm Bumi Resources sold off.

Bumi yesterday signed a heads of terms agreement with the Bakrie Group for the separation, in return for a $50m (£32m) deposit in a ring-fenced account.

The agreement will remove the Bakrie group and beleaguered Indonesian division Bumi Resources from the London outfit altogether.

But board opponent Nat Rothschild, who has called an EGM and yesterday announced that his supporters had increased their stake further, said the Bakries were putting up $50m in an attempt to “buy the EGM”.

Under the agreement, the Bakrie family will cancel their near 24 per cent shareholding in Bumi, in exchange for Bumi selling its stake in Bumi Resources.

The London-listed miner will then sell the Bakries the remaining near 19 per cent of the Indonesian arm for $278m in cash, which they will place in an escrow account within five days of signing the agreement.

Separately, the miner reported good production figures ahead of the key vote next week.

Bumi’s main Indonesian asset Berau Coal posted a 30 per cent year on year jump in coal sales to 6.5m tonnes over the fourth quarter.

In terms of production, Berau posted a 15 per cent hike in coal output, selling 5.9m tonnes over the fourth quarter, and hitting its full-year production target of 21m tonnes.