Indonesia-focused mining company Bumi said on Wednesday that it has appointed Rothschild Group to evaluate the proposed transactions by the Bakrie Group last week on the basis of their value for shareholders and whether they can be delivered.

On Thursday 11th October, shares in Bumi leapt after the Bakrie Group, a major shareholder in the company, tabled an offer under which it would swap its stake in the group for a stake of equivalent value in Bumi Resources.

It was hoped that the proposal could bring the curtain down on the fractious relations between the Bakries, one of Indonesia's wealthiest and most influential families, and another of the Bumi's original backers, financier Nat Rothschild. However, on Tuesday 16th Rothschild resigned from the board of Bumi, saying he had lost confidence in the management's ability to stand up for investors.

In addition, the Bakrie Group also made a conditional proposal on Thursday 11th to buy back the remaining 18.9% shareholding in Bumi Tbk for cash before Christmas 2012, and made a conditional proposal to make a cash offer within the next six months for the company's approximately 84.7% shareholding in PT Berau Coal Energy Tbk.

In Wednesday's (17th) statement, Bumi said that it has requested its independent Non-Executive Directors to review the proposals on their own merits and report back to the board.

Julian Horn-Smith, Senior Independent Director of Bumi said: "The proposals put forward by Long Haul will receive the full attention of the independent non-executive Directors of Bumi. We have appointed Rothschild Group, acting as an unconnected and independent financial adviser, to evaluate each of these proposals, on which the board has not yet formed a view. Our objective is to ensure all shareholders are treated fairly and we will update the market as soon as practicable."

The company said it will not make any recommendations regarding the proposals until the ongoing investigation into its Indonesian operations is "appropriately advanced".

The share price rose 1.89% to 254p by 15:30.

NR

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