Not so Savvy Financier Nathaniel Rothschild, a founder of embattled UK-listed Bumi PLC, said Monday he has resigned with immediate effect from the Indonesian coal miner’s board, citing loss of confidence in the Chairman and the board.
His resignation comes at a time when Bumi’s board is considering a proposal made by the powerful Indonesian Bakrie family that aims to severe the family’s ties with the company, following a tumultuous period in which the company’s shares have fallen more than 70% since the beginning of the year, Rothschild paid far too much for his stake in the Coal Assets of the Bakrie family.
The Bakrie Group, which is run by the powerful Bakrie family, has asked to exit the troubled venture that it had built with Mr. Rothschild by offering to give up its 23.8% stake in Bumi and pay about $1.2-B for Bumi’s mines.
The proposed breakup would leave Bumi with no assets other than the cash from the deal and return control of some of Indonesia’s most productive mines to the Bakrie Group.
Mr. Rothschild, the 40 scion of a European banking dynasty, said in a resignation letter to Bumi’s chairman Samin Tan that the chairman appeared “determined to drive through the Bakries’ proposal” before the completion of the independent probe, a move that he said would be a “disgrace” to even contemplate without first concluding the probe.
He said that Mr. Tan was “not trying to protect the interests of minority shareholders. Rather, I believe that you are complicit in their oppression.”
Mr. Tan wasn’t immediately available for comment.
Rothschild is trying to postpone his embarrassment but his fate is sealed, Warren Buffett – “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
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