Asia Resource Minerals gives Bakries more time to complete split

LONDON, Jan 15 (Reuters) - Indonesia-focused coal miner Asia Resource Minerals (ARM) has granted the Bakrie family a two-day extension to fulfil requirements for a split from the company, delaying a much-needed step for a turnaround of the company.

Shareholders in London-listed ARM, previously known as Bumi Plc in December voted in favour of a split with the Bakrie family that co-founded the company, hoping this would revive a business battered by boardroom rows, allegations of wrongdoing and weak coal prices.

Under the complex separation deal, the Bakrie family would sell its stake in ARM to outgoing chairman Samin Tan - who in turn would become the single largest shareholder, with a 47.6 percent stake.

The Bakries would then use the income from that sale and additional cash of about $230 million to buy back a 29 percent stake in Indonesian miner PT Bumi Resources (Other OTC: PBMRF - news) , shares which are currently held by Bumi Plc.

The Bakries now have until Jan. 17 to fulfil requirements necessary for the split.

"The reason for this short extension is to provide sufficient time for ARM to engage with the Bakrie Group in order to understand and consider the reasons for the delay, whether a longer extension is appropriate and, if so, until what date," ARM said in a statement.

Without an extension the deal would have terminated on Wednesday. The date for final completion of the separation is as yet unchanged at Jan. 24.

Some market sources however are sceptical the two-day extension will be enough for the asset-rich but frequently cash-poor Bakries to finance the cash portion of the deal.

"To agree to any further extension, the Plc special committee must now request full visibility on Bakries' sources of finance so they can prove they have the means to complete this transaction," Bumi Plc co-founder Nat Rothschild said in e-mailed comments.

The Bakrie founded Bumi in 2010 together with Rothschild, with the aim of bringing promising Indonesian coal assets to London investors, but their relationship soured quickly.

A spokesman for the Bakrie group was not immediately available to comment.