Looks like the Bakrie’s are ready to formalise their offer in the tussle for Bumi

An RNS announcement out just before midday

Resignation of Director 

Bumi plc (“Bumi”) announces that Indra Bakrie, a director and co-chairman of

Bumi, has resigned with immediate effect.

In his letter to the Bumi board of directors Mr Bakrie stated that because the

initial objective of the Bakrie Group in pursuing a London listing had not been

met, the Bakrie Group had submitted a proposal (“the Bakrie Proposal”) to exit

from Bumi. It was therefore appropriate that he resigned as a director of the

company, the letter said.

Bumi announced the terms of the Bakrie Proposal on 11 October 2012

Indra Bakrie

With but Ol Natty and Indra Bakrie – the 2 opponents on either side of the ring that is Bumi Plc now leaving the board, things could finally be about to heat up for shareholders.

The resignation comes ahead of Bumi’s London board meeting on Wednesday in which board members are likely to discuss the Bakrie proposal after reviewing reports from U.K.-based law firm Macfarlanes and investment bank Rothschild Group on the probe and the fair value of the proposal, respectively – it would be interesting to be a fly on the wall at that meet..!

Macfarlanes is conducting an independent probe into alleged financial irregularities largely focused on about $600 million in development funds at Indonesia’s largest coal miner, PT Bumi Resources TBk (BUMI.JK), in which Bumi PLC owns a 29% stake, while the Rothschild Group, ironically, is carrying out fairness opinions on any proposals made to the board.

So far, the board has received one proposal from the Bakrie family and a letter suggesting an alternative proposal from a consortium led by European financier and Bumi PLC co-founder Nathaniel Rothschild, who isn’t affiliated with the bank that bears his family name.

The first Bakrie transaction involves the Bakrie family giving up its 23.8% stake in Bumi PLC for 10.3% of Bumi Resources. The Bakrie family would then pay $278 million in a second transaction to buy out Bumi PLC’s remaining 18.9% stake in Bumi Resources. In a third transaction, the Bakrie family has offered to buy out Bumi’s remaining asset, an 85% stake in Indonesian coal producer PT Berau Coal Energy TK (BRAU.JK) for about $950 million sometime next year and the Bakries have been busy in recent weeks looking to raise cash. Total value of the bid is north of 400p per share.

Ol Natty Nathan Rothschild

Mr. Rothschild, who stepped down from Bumi’s board two months ago due to co-chairman Tamin San’s inclination to accept the Bakrie proposal, has also put forward an alternative proposal, which involves accepting the Bakrie family’s first two proposals but not the third. The Rothschild proposal would also inject $270 million into the company via a consortium of investors to remove Mr. Tan and another large Bumi PLC shareholder, Rosan Perkasa Roeslani, from the board and Bumi’s shareholding.

Hold onto your hats ahead of next Wednesday!