atans1

Even a Rothschild can get screwed in Indonesia

In Corporate governance, Indonesia on 14/12/2011 at 6:46 am

I’m a bull on Indonesia* for all my sins and it hasn’t done me much gd. It is a treacherous place, navigating through opaque regulations, erratic business relationships, changing policies and deeply entrenched corruption.

Nat Rothschild, son of Jacob Rothschild (a semi- retired leading London- based financier), a good dealer-maker and savvy investor has found that out the hard way. He is chairman and a major shareholder of London- listed Bumi plc which  owns a 29% stake in Jakarta- listed Bumi Resources, and 75% of Berau. He wrote in early November a very nasty letter to the CEO of both Bumi compaines (same man), complaining that

–  despite being heavily in debt, Bumi Resources had US$867m of assets that had nothing to do with its core coal business;  and

– these assets were held by “connected parties”.

It seems he has yet to receive an official response.

RElated post:

http://atans1.wordpress.com/2010/12/15/nomura-bullish-on-indonesia/#more-5517

——————————

*Long on Lippo Malls Trust and hoping First Reit’s share price falls so I can buy.

About these ads
  1. Just buy a big ETF on Indo and let it rot for 30 yrs. Auto re-invest any dividends back into the ETF. Returns will be 10,000%. Just in time to fund your retirement.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 222 other followers

%d bloggers like this: