Tag Archives: Rothschild

Rothschild loses battle over Bumi

21 February 2013 Last updated at 18:43 GMT Nathaniel Rothschild Nathaniel Rothschild was hopeful of regaining control of Bumi, a company he helped found Financier Nathaniel Rothschild has lost his bid to oust the current board of coal mining giant Bumi, the company he helped to found.

Chairman Samin Tan survived a vote to remove him but informed the board he was stepping down.

Mr Rothschild had wanted to rejoin the company and expel 12 of the 14 board members, including the chief executive and chairman.

Shareholders rejected his attempts and voted to remove just two members.

Chief executive Nick von Schirnding also managed to keep his post, with more than 60% of votes cast in his favour at the London meeting.

Mr Tan, who received 57% of votes in favour of his retention, said he would resign once a new independent chairman was found.

The company said it would look for a new chairman “who has experience in, and is familiar to, the London market”, according to a statement.

The two members who were ousted were Jean-Marc Mizrahi and Nalinkant Rathod.

Mr Rothschild set up Bumi with the influential Bakrie family, part of Indonesia’s political and business elite, in 2011.

The deal was intended to offer international investors the chance to buy into natural resources assets in emerging markets while ensuring they were protected by UK market rules.

Fraud allegations

But the partnership, and relations with the Bakrie family, soured after Mr Rothschild called for a radical clean-up at the firm.

To make matters worse, he made allegations of potential misuse of development funds and other assets at the firm in September 2012.

Allegations of financial irregularities at Bumi’s key Indonesian operating subsidiary, PT Bumi Resources – in which it owns 29% alongside the Bakrie family – first emerged that month, after Mr Rothschild received information from a whistleblower.

However, an investigation by legal firm Macfarlanes, commissioned by the London-listed parent company, said the evidence provided to Mr Rothschild comprised emails that had been obtained illegally, something Mr Rothschild denies.

Macfarlane said the claims that money intended to finance development of coal mines had been misappropriated could not be substantiated, in large part due to “the unwillingness of key parties to be interviewed and provide information”.

Bumi’s management said that it had referred the matter to the relevant authorities, including the Indonesian financial services authority, and the UK Serious Fraud Office.

Mr Rothschild quit the board in October.

Bumi’s new chief executive, Mr Schirnding, has negotiated an amicable divorce with the Bakrie family, including the sale of the family’s stake in PT Bumi Resources for $580m (£370m), and the family’s divestment of its 24% in the London-listed company.

But the board warned that the deal would be scuppered if Mr Rothschild succeeded in retaking control of the company.

The company’s share price has slumped 60% since it listed in 2011.

Bumi board fights Rothschild plan

Bumi's Nathaniel Rothschild and Bakrie Brothers Chief Executive Officer Bobby Gafur Umar Mr Rothschild and the Bakrie family jointly founded the London-listed parent company in 2010 The board of Bumi has rejected a bid by co-founder Nat Rothschild to retake control of the mining firm at a shareholder meeting on 21 February.


Mr Rothschild has called a vote to replace 12 of the 14-member board.


The board warned “stalemate, continued shareholder disputes and further value destruction” would ensue.


Bumi’s management instead wants to push through a split agreed with Indonesia’s Bakrie family following claims of fraud originally levelled by Mr Rothschild.


Allegations of financial irregularities at its key Indonesian operating subsidiary, PT Bumi Resources – in which it owns 29% alongside the Bakrie family – first emerged in September, after Mr Rothschild received information from a whistleblower.


However, an investigation by legal firm Macfarlane, commissioned by the management of the London-listed parent company, said the evidence provided to Mr Rothschild comprised emails that had been obtained illegally.


Macfarlane said the claims that money intended to finance development of coal mines had been misappropriated could not be substantiated, in large part due to “the unwillingness of key parties to be interviewed and provide information”.


Bumi’s management said that it had referred the matter to the relevant authorities, including the Indonesian financial services authority, and the UK Serious Fraud Office.

Resignation threat

Mr Rothschild quit the board in October.


Bumi’s new chief executive, Nick von Schirnding, has negotiated an amicable divorce with the Bakrie family, including the sale of its stake in PT Bumi Resources for $580m (£370m), and the family’s divestment of its 24% in the London-listed company.


The board warned that the deal would be scuppered if Mr Rothschild succeeded in retaking control of the company.


It also claimed that the Bakrie family would then seek to enforce its rights under an existing shareholders’ agreement, by litigation if necessary.


The board said its rejection of Mr Rothschild’s proposal was unanimous, and if the motion were passed, the two serving board members that the British financier proposed to retain – Sir Graham Hearne and Steven Shapiro – have vowed to resign.


Bumi’s current management also announced further steps in its plan to consolidate control of another Indonesian coal-mining subsidiary, Berau Coal, of which it owns 85%.


It appointed the unit’s operations head, Eko Budianto, to be its new overall director, and also hired Tony Redman of the mining giant Anglo American as a technical advisor.


Mr Rothschild criticised Mr Budianto’s appointment on Monday, saying that he was not truly independent.

Bumi row: Rothschild quits board

16 October 2012 Last updated at 03:22 GMT  Relations between Mr Rothschild and the Bakrie group have soured in recent times Nathaniel Rothschild, co-founder of coal mining giant Bumi, has quit the firm’s board amid a row with Indonesia’s influential Bakrie family.


The two have been locked in a dispute over assets of the Bakrie family, in which Bumi owns a stake.


Last week, the Bakrie Group offered to buy back the stake.


In his resignation letter, Mr Rothschild said “it will be a disgrace to proceed with, or even to entertain the proposal”.


He said the proposal should not be considered “given the scale of the alleged irregularities, as well as other facts not yet in the public domain”.

‘Lost confidence’ Continue reading the main story
I am afraid that I have lost confidence in the ability of the [Bumi] Plc board to stand up for investors”

End Quote Nathaniel Rothschild Bumi The dispute revolves around Bakries’ Indonesian firm PT Bumi Resources, in which Bumi owns a 29% stake.


Last year, Mr Rothschild had called for a radical clean-up at the firm, leading to relations between the two being soured.


To make matters worse, Bumi said last month that it had launched a probe into “potential financial and other irregularities” at the firm.


Mr Rothschild said the proposal by the Bakrie group to buy back the assets amid the ongoing probe was “not in the interests of minority shareholders”.


He said he feared that the chairman of Bumi, Samin Tan, who has close ties to the Bakrie Group, could approve the proposal.


“I am afraid that I have lost confidence in the ability of the [Bumi] Plc board to stand up for investors.”