BUMI – ANNOUNCEMENT JUST OUT. LET BATTLE COMMENCE!

Seems Ol Natty is playing the Bakries and Tan at their own game it seems with a proposal that buys them out near the current share price (that’s never going to fly!) and not surprisingly, Tan has told him , metaphorically, to go forth and multiply (and not with his new squeeze)!

Looks like more heel dragging by the non execs while the Bakries and Tan go and find some proper money to entice the minorities to sell and leave Nat bereft. Price £5+

The real interesting element – ”It is not and never has been the intention of the Board to recommend the disposal of Berau on the terms proposed by the Bakrie Group.” Translation – if you want this asset back Messr Bakrie then you will have to revise your price somewhat higher..!

Highlights – 

Near final version of investigation report received 

Board evaluating all legal and commercial options available to it in light of report 

No material asset write-downs as a result of the investigation 

Company working towards a transaction which separates the Bakrie Group from the Company and divests the minority interest in Bumi Resources1 

Relevant shareholders (PT Borneo Lumbung Tbk and Bukit Mutiara) have informed the Board that they have no intention of selling their shareholdings on the terms of the NR Investments Proposal2  

CEO Nalin Rathod to be succeeded by Nick von Schirnding 

As ever, the initial market reaction is wrong in our opinion. Quite what “the market” doesn’t understand in the situation that is crystal clear to us – namely the current price of 430p put on the stock is not tempting the minorities or Rothschild and vice versa Tan will not sell near the current level is beyond us…

We’re in feet first at 263p. Thank you Mr Market. 😉