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Hambro sells millions of Bumi shares as Rothschild quits on Bakrie row
In a brief statement posted on the London Stock Exchange last night the company said: 'Bumi announces that Nathaniel Rothschild, a non-executive director of the company, has today resigned from the board of the company with immediate effect.'
Hambro (pictured), who previously held 10 million shares in the company worth £24.6 million at a share price of 246p accounting for around a 5% stake in the firm.
The shares were held within his $10.6 billion BGF World Mining fund, which was the largest mutual fund investor in the company, according to the shareholder register as at the end of August seen by Wealth Manager. Following the disposal, which took place on 11 October, the fund no longer has an interest above the 3% disclosure level.
Other high profile shareholders in Bumi included Richard Buxton, who owned around 5 million shares, or 2.73% at the end of August, through his Schroder UK Alpha Plus fund. The Abu Dhabi Investment Authority also had a 4.13% interest.
Bumi shares have leapt almost 40% in the last month, primarily on an offer last week to buy out the company’s listing for $1.2 billion, or 483p a share according to a calculation by Barclays analysts.
The shares have nonetheless lost 66.5% of their value over the past 12 months on potential financial irregularities in an Indonesian subsidiary, and remain a shadow of the £10 they listed at in mid-2010. They lost another 12.4% on Monday to close at 245p.
Rothschild has resigned in protest over a proposal from the Indonesia Bakrie Brothers to unravel their 47.6% position in the company at a significant profit. The brothers had already managed to offload half of their stake to chairman Samin Tan earlier this year.
Rotshchild, who established the investment vehicle to form Bumi, told Tan in a letter made public it was a 'disgrace to proceed with, or even entertain, the proposal' while financial irregularities were being investigated at the firm.
In the letter addressed to Sam, Rotshchild said: 'You appear determined to drive through the Bakries' proposal. I believe this proposal is so obviously not in the interests of minority shareholders that I find it impossible to stay on as a director...I am determined to fight for my fellow investors and can do that better from outside the tent.'
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by James Poulter on Mar 11, 2014 at 09:00