Rothschild halts BRM buy

 
Kasmira Jefford
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NATROTHSCHILD’S Indonesian coal-mining company Bumi announced yesterday it would not be going ahead with its proposed 75 per cent acquisition of Bumi Resources Minerals due to “continuing market uncertainties”.

The financier’s London-listed company has an existing 25 per cent stake in BRM through its 29.1 per cent shareholding in thermal coal producer PT Bumi Resources, which owns the remaining stake.

Bumi planned to buy the stake from Bumi Resources for $2.07bn of convertible bonds, adding base and precious metals such as tin, zinc and gold to its core focus on coal.

The acquisition was also intended to simplify the company’s complex ownership structure.

Although the statement published yesterday did not provide further details, the deal is understood to have been abandoned due to recent falls Bumi’s share price, which has widened the gap with the £11.80 strike price on the convertible bond.

Bumi closed up 1.07 per cent to 756p yesterday.