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hares in PT Bumi Resources, stock symbol BUMI, closed high on Thursday after its majority shareholder, London listed Bumi PLC, announced that the energy and mining company would return control to its Indonesian shareholder Bakrie Group.

BUMI’s stocks closed at Rp 640 (US 7 cents) on Thursday — an increase of almost 5 percent compared to Wednesday’s closing price of Rp 610 — during the day’s trading, BUMI achieved it’s highest increase of 6.5 percent to Rp 650.

Shares in Bumi PLC dropped by 2.4 percent in London to £2.64 ($4.26) as of 11 a.m. local time.

Bumi PLC announced on Wednesday evening that it was working on a transaction that would separate ownership of Bakrie Group — which consists of PT Bakrie & Brothers and Long Haul Holdings Limited— and the divestment of its 29.2 percent owned PT Bumi Resources, as soon as was practical.

“The independent non-executive directors are continuing to work through a number of very complex issues [...] with a clear focus on maximizing shareholder value,” Bumi PLC deputy chairman and senior independent director Sir Julian Horn-Smith said in a written statement.

Bakrie Group, the holder of a 23.8 percent stake in Bumi PLC, proposed recently to exchange its stake for the company’s 10.3 percent ownership in Bumi Resources. Bakrie Group also offered to purchase Bumi PLC’s remaining 18.9 percent stake in Bumi Resources for US$278 million.

Bakrie Group, which is affiliated with presidential candidate Aburizal Bakrie, also proposed to takeover all of Bumi PLC’s 84.7 percent stake in another subsidiary, PT Berau Coal Energy, for $946 million. However, Bumi PLC said that it had no interest in the terms proposed by Bakrie Group.

Bakrie Group welcomed the board’s announcement as well as said that counter proposal of its rival Nathaniel Rothschild was unworkable and gained no support as claimed.

“We would like to reiterate that we are acutely conscious that the creation of Bumi PLC has been a major disappointment to shareholders, not least ourselves,” Bakrie Group senior vice president Christopher Fong said. “Financing is already in place, we have the cash ready to complete the transaction.”

In 2010 Bakrie Group and Rothschild established Bumi PLC, previously Vallar PLC. The deal was seen as the marriage of two powerful families — British business dynasty Rothschild and the Indonesian conglomerate Bakrie — whose businesses cover almost all sectors.

The relationship turned sour last year, after Rothschild criticized financial management in Bumi Resources. Last September, Bumi PLC launched an investigation in to alleged financial irregularities highlighted by a whistle-blower, which led to Bakrie Group’s exit proposal.

Rothschild submitted an alternative proposal and claimed to have been backed by minority shareholders and new investors.

Two out of five points in Rothschild proposal resembled Bakrie Group’s Bumi Resources offer. Another point proposed two shareholders — PT Borneo Lumbung Energi & Metal and PT Bukit Mutiara — sold their respective 23.8 percent and 9.8 percent stake in Bumi PLC. Two final points said Bumi PLC should issue new shares amounting to 20 percent of its enlarged capital in a non-preemptive basis and acquire a 4 percent stake in Berau, held by Bukit Mutiara.

However, neither Borneo nor Bukit Mutiara have any intention of selling shares held in the company, according to Bumi PLC’s announcement. This announcement was criticized by Rothschild who said it was influenced by the Bakries, chairman Samin Tan and Bukit Mutiara president director Rosan Roeslani, both who are seen as Bakries’ allies.

Rothschild said that he would continue to attempt to remove the Bakries and its associates from
Bumi PLC.