Feb 10, 2012

Yawadwipa, Samin Tan & Bumi Plc

Yawadwipa Companies has strongly provided a back-up for Samin Tan, a partner of Nirwan Bakrie in Bumi Plc.
In an official statement widely distributed by Yawadwipa yesterday, the company, which has bid PT Bank Mutiara Tbk, previously known PT Bank Century Tbk, at a consideration price of US$750 million as well.
Yawadwipa, which is led by CEO and Co-Founder C. Christopher Holm with Presetyo Singgih as COO. Yawadwipa is operated by a small group of executives (partners). Chad Christopher is also acting as chairman of the Investment Committee of the Java Fund. 
"As stated previously by us, we are highly interested as investors in the natural resource sector and were strong supporters of Samin Tan and his management team at Borneo Lumbung Energi," Yawadwipa said.
Despite the share price reduction that has occurred since the transaction, in part due to declines in commodity prices, we were advocates of the transaction with Bumi and believe strongly in the strategic merits of the deal, both in the intermediate and long-term. We are confident in the core operating teams and
the prospects for the underlying assets.
"Nonetheless, we have become increasingly concerned with the effects of the current 'noise' at the Bumi board level, particularly given broader market volatility and global economic uncertainty. We view this friction, whether purely in the name of efficiency or otherwise as counterproductive to the interests of Bumi shareholders especially during a time post-transaction when extreme coordination and cooperation is required. It is unfortunate that such matters needed to be made public and could not be handled in private, though the precedent was set by a certain Bumi Plc insider in November during the period prior to consummation of the Borneo transaction. 
"The November comments,whether valid or not, were recklessly and carelessly delivered via a public forum. As a private investor, this may well have been tolerable behavior, but as an insider and board member, such delivery, in our opinion, was wholly unacceptable. If an employee did this, such individual most certainly would have been fired on the spot."
In November, Nathaniel Rothschild, the founder and shareholders of Bumi Plc, has criticized the management and corporate governance at the Indonesian coal company he is trying to transform into a top-tier global miner.In a letter seen by the Financial Times, Rothschild called for a “radical cleaning up” of PT Bumi Resources Tbk, the Jakarta affiliate of London-listed Bumi plc and one of the world’s biggest coal miners.
The letter has raised tensions between the aristocratic billionaire and his Indonesian co-investors, the Bakrie family, who are Bumi’s largest shareholders.
"As a prospective shareholder of Bumi, we now seek an end to the public drama. We find the proposals of Samin Tan and Bakrie to be wholly consistent with streamlining an organization that has transformed itself following the strategic merger and consistent with good corporate governance."
Yawadwipa will immediately take whatever steps necessary to support Samin Tan's agenda, including but not limited to acquiring sufficient voting shares of Bumi so as to assure the passage of the agenda.
Regarding the statement above, bold words, it seems that Yawadwipa is just a potential investor who is interested with natural resources and has clearly declared to support Samin Tan and Bakrie. 
However, there is no detail information how much stake Yawadwipa controls in Bumi Plc. The statement is unclear to reveal the way how to support Samin Tan and Bakrie family. Yawadwipa is seeking to acquire sufficient voting shares to assure the passage of the agenda. 
A relevant question, is Yawadwipa serious with the statement above? In fact, they don't declare Bumi Plc shares they own right now. Without evidence and fact, anyone in the street can claim to be a supporter for Samin Tan and Bakrie. What do you think? 
Who is Prasetyo Singgih?
Prasetyo Singgih is vice chairman of Indonesian Chamber of Commerce and Industry for China Committe.
He is also a politician and acting as Head of Department for Justice and Human Rights in Golkar Party, led by Aburizal Bakrie, brother of Nirwan Darmawan Bakrie. 

Disclosure: No position at the stock mentioned above.

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