Rothschild to step down as Bumi co-chair

Financier Nat Rothschild will step down as co-chairman of Indonesian coal mining company Bumi in a resolution of the dispute between Rothschild and the company’s Indonesian shareholders,

the

Financial Times

reported.

Rothschild will stay on the board as a non-executive director.

The dispute began when Rothschild criticized the company’s corporate governance in a letter leaked to the media, the

FT

article said.

Indonesian coal-mining tycoon Samin Tan, who became a shareholder in the company in October, will become chairman. The company’s CEO and CFO will also be replaced, the article said. Indra Bakrie, who had been chairman, will become co-chairman.

Tan and the Bakrie family had called for Rothschild’s ouster from the company but relented under pressure from minority shareholders, the report noted. Tan plans a shake-up at the company, the article said.

In October, the Bakries sold half of their 48% stake in Bumi to Tan in order to refinance a $1.35 billion loan. Tan and the Bakries together now own 30% of Bumi’s voting shares. (Source:

Financial Times,

March 27, 2012.)