The family’s offer to buy back its assets from the company for an estimated $1.4 billion has sent its shares rocketing by nearly 40 percent.
Listed on the London Stock Exchange, Bumi is a leading thermal coal group with interest in the largest coal producing assets in Indonesia. Reaction to the Bakrie family proposal has been overwhelmingly positive with analysts claiming it to be good news for Bumi’s shareholders.
"Valuation aside, this looks like good news for Bumi, in our view, as it could walk away with its reputation intact and some cash in the bank," analysts at London-based brokerage Numis were quoted as saying.
