Tuesday, June 21, 2011

Final stage of Indonesia's major coal assets listing on London exchange

Bumi, the renamed venture founded by global financier Nathaniel Rothschild and majority-owned by Indonesia’s Bakrie family, has detailed fraud and graft allegations among risks to investors eyeing its shares when it lists next week. “It may not be possible for the group to detect or prevent every instance of fraud, bribery and corruption in every jurisdiction,” Bumi said in its prospectus.

Bumi shares, which will begin trading on 28 June, replace existing shares in Vallar, Rothschild’s original venture for investment in the mining sector. The listing of Bumi is the final step in Vallar’s major transformation, which began last year with the Bakrie Group and Rothschild joining forces for Vallar to take a 25% percent stake in coal miner Bumi Resources and a 75 percent stake in Berau Coal Energy.

Bumi has since said it aims to increase its stake in miner Bumi Resources, Asia’s biggest thermal coal exporter, to up to 50%. It will also own a 75% stake in the Bumi Resources Minerals unit.

Indonesian private equity tycoon Rosan Roeslani will own 17.4% and is joined on the register by the Abu Dhabi Investment Council, which will own a 5.5% stake. The Bakrie family’s voting rights will be set at 29.9%, despite holdings of 55%, Reuters reported.

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