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Business News

Bumi in £113m deal with the former boss of its 'black hole' subsidiary

Bumi, the scandal-scarred coal miner, has struck an agreement to restore its reputation and ultimately lift the suspension in trading of its shares.

Its chief executive, Nicholas von Schirnding, has struck a deal that will see the former boss of its Indonesian Berau subsidiary transfer Bumi $173m (£113m) in land and shares in a shipping company.

Bumi found there was $201m of unaccounted expenditure in the division. Rosan Roeslani has made no admission of wrongdoing and does not accept liability for the financial problems, but has agreed to transfer assets to Bumi on condition that any potential claims against him are waived.

This should help pave the way for a resumption in trading the shares and ease the company's split from the Bakrie family, who co-founded Bumi with Nat Rothschild in 2010.

However, they soon fell-out and Mr Rothschild has been trying to wrest back control of Bumi. His campaign helped inflict a bloody nose on the board at yesterday's annual meeting.

There were substantial votes against the re-election of board members, as well as the company's full-year accounts and remuneration report. Nearly 28 per cent voted against Mr Von Schirnding staying on the board, while the only candidate backed by Mr Rothschild, Sir Richard Gozney, received 99.8 per cent support.