Bumi closer to split with Bakrie family

London-listed miner Bumi is to ask shareholders on December 4th to approve its long-touted separation from Indonesia's controversial Bakrie family and its name change to Asia Resource Minerals.

Bumi, created through a marriage between the Bakries and financier Nat Rothschild, has been dogged by boardroom battles since 2011. The public dispute resulted in the share price falling 69 per cent last year.

Bumi will seek approval for an agreement whereby the Bakries will buy the company's 29.2 per cent stake in Jakarta-listed Bumi Resources for $501 million, a 116 per cent premium to its current value.

In return a company owned by Samin Tan, Bumi plc's Indonesian chairman, will buy the Bakries' indirect stake in Bumi plc for $223 million. – Copyright The Financial Times Limited 2013