Indonesian mining company formerly known as Bumi won a ruling that could lead to the return of $173m owed by a former executive; ruling marks a victory in the firm’s attempts to resolve apparent financial irregularities

Miner formerly known as Bumi wins ruling against former director

Asia Resources Minerals said it will chase Rosan Roeslani for missing £110m more than a year after he agreed to pay

Bumi, now known as Asia Resource Minerals, has lost more than 90pc of its value since joining the London market in 2010 Photo: Alamy

By Marion Dakers

2:39PM GMT 31 Dec 2014

Shares in the mining company formerly known as Bumi more than quadrupled in value on Wednesday after it won a ruling that could lead to the return of $173m (£110.8m) owed by a former executive.Asia Resource Minerals (ARMS), the coal miner that changed its name from Bumi a year ago, said it will now try to enforce the arbitration ruling against Rosan Roeslani, in the latest development of a four-year saga at the embattled firm.

The company has been pursuing Mr Roeslani for $201m that was unaccounted for in Berau, a subsidiary of ARMS that he ran until December 2012.

He agreed in June 2013 to hand over $173m without admitting wrongdoing, but missed the payment deadline a year ago. ARMS took the dispute to an arbitration tribunal in Singapore, which has now found in the company’s favour.

Mr Roeslani could not be reached for comment.

The ruling marks a victory in the firm’s attempts to resolve apparent financial irregularities that prompted it to delay its results twice and suspend its shares for several months in 2013.

It also means investors in ARMS – including the financier Nat Rothschild, former chairman Samin Tan and his lenders at Raiffesen Bank – have enjoyed a rare increase in the value of their holdings.

Mr Rothschild brought ARMS to the London stock market in 2010 by using a listed cash shell to take over a 29pc stake in PT Bumi along with an 85pc stake in Berau Coal.

The firm has been plagued by warring shareholders since the deal, with Mr Rothschild trying unsuccessfully to replace the entire board in February 2013.

PT Bumi was bought back by Indonesia’s Bakrie family in March, leaving ARMS to focus on Berau, after a tortuous corporate divorce that took almost two years and resulted in both sides fling insults and lawsuits.

ARMS’ shares floated at £10 in 2010. Until Wednesday’s surge, the shares had been changing hands for less than 5p each.

“The company will seek to enforce the arbitration award by all available means against Mr Roeslani, and will update on its progress in this regard as soon as practicable in January 2015,” it said in a statement.

Raiffesen Bank is the company’s largest shareholder, holding 23.8pc of the firm. The Austrian lender took control of some of Mr Tan’s shares in October when he failed to comply with the terms of a loan used to raise his stake during the divorce from the Bakries.

ARMS has $450m-worth of bonds maturing next July. It is working with advisors from Houlihan Lokey to plot out a new capital structure, which could include issuing new shares.


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