B

ritish financier Nathaniel Rothschild may have secured backing for his plan to make big changes in London-listed Bumi plc’s board before one of the company’s main assets is taken out.

Rothschild, through his business NR Investments, has submitted a requisition for an extraordinary general meeting (EGM) to remove 12 out of 14 board members and replace them with eight new people, including Indonesian tycoon Hashim Djojohadikusumo and former UK ambassador to Indonesia, Richard Gozney.

Ida Sudoyo, the corporate communication director of Arsari Group, which is owned by Hashim, said that the businessman had accepted the offer.

“Pak Hashim is now in London. All I can say is […] Pak Hashim Djojohadikusumo, as chairman of Arsari Group, has accepted a nomination to become a member of the board of Bumi plc by NR Investments controlled by Nathaniel Rothschild,” Ida said on Wednesday.

Ida declined to comment on whether Hashim already has a stake in Bumi plc nor how much the businessman prepared to invest in the company.

Bumi plc is under the spotlight following the row between Rothschild and the Bakrie Group, who entered an agreement in 2010 to develop a mining group that owned a majority stake in two Indonesian major coal miners: 29.9 percent stake in PT Bumi Resources and 84.7 percent in PT Berau Coal Energy.

Rothschild and Bakrie Group’s ties have deteriorated since 2011 when the British financier made public an internal letter demanding better management in the company’s subsidiaries. Tension has been heightened since then and last September, Bakrie Group submitted a proposal to takeover Bumi Resources and Berau.

Rothschild made a counter proposal, saying that he had support from new investors ready to enter Bumi plc after the release of Bumi Resources to Bakrie Group. He also asked other shareholders in Bumi plc, PT Borneo Lumbung Energi & Metal and PT Bukti Mutiara sell their stake in the company to the new investors.

Bumi plc’s board said that it would work on the divestment of Bumi Resources but said that Rothschild’s alternative proposal was undeliverable as Borneo and Bukit Mutiara refused to sell their stake.

In an email statement, Rothschild said that he was building up support from other shareholders.

“Our objective is to firm up our support in the weeks leading up to EGM to ensure a comprehensive victory,” Rothschild said.

The supporters of Rothschild’s alternative proposal were Schroder Investment Management, Standard Life Investments, the Abu Dhabi Investment Council (ADIC), Artemis Investment Management LLP and Taube Hodson Stonex Partners LLP.

Schroder is reported to have supported Rothschild’s new bid in the EGM as well as have met Hashim over his plan to enter Bumi.

Under a UK ruling, the resolution to approve the board changes or not will be determined by a simple majority vote.

According to Bumi plc’s 2011 report, Borneo holds 29.99 percent voting rights, PT Bukit Mutiara 13.11 percent, Rothschild 11.92 percent, ADIC 4.15 percent, Schroder 3.99 percent and Taube Hodson 3.16 percent. The figures may have changed as there has been share purchasing and selling as well as a recent UK Takeover Panel ruling, which stated that Bakrie Group-Borneo-Bukit Mutiara are a concert party, which are only allowed to have 29.99 percent combined voting rights.