Bumi nears completion of $500M deal for Bakrie exit

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Indonesian coal producer Bumi Plc is close to finishing a deal with one of Indonesia's affluent families that would rake in US $500 million. This move would mark the end of Bumi's affiliation with Bakrie.

In a Bloomberg report, Bumi confirmed that it is close to completing a transaction to sell 29.2% of its PT Bumi Resources as it gears up to cut off their ties with co-founders Bakrie Group.

The companies' relations started to sour last year in the middle of a slump in coal prices and board infighting after almost two years of association.

Samin Tan, Bumi's Chairman, is also in negotiations with Bakrie to purchase their 28.3% stake in the London-listed Bumi.

Bumi and Bakrie, which co-founded the company with a US $3 billion undertaking with Nathaniel Rothschild, first publicized their plans to cut their ties in October last year.

Bakrie, a palm to oil property empire, is a family-owned company established in 1942 in Sumatra.

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