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