The Bakrie family, owner of coalminer Bumi Resources, is in talks with London-based Vallar to agree a share swap deal that would see the family lose majority control of Bumi Resources in exchange for an increased share in Vallar.
The deal would see the Indonesia-based family swap 26% of their Bumi Resources for 11.6% of Vallar, according to a statement by Vallar.
Vallar, a shell company founded in July 2010 by James Campbell and Nat Rothschild, already owns 25% of Bumi following a deal in November last year. The proposed share swap would increase Vallar's holding in Bumi to 51%, making it the majority shareholder.
The Bakrie family's holding company, the Bakrie Group, would hold 54.6% of Vallar following the swap; up from the 43% they already hold from last year's deal. But their voting shares will remain fixed at 29.9%.
Bumi Resources would be renamed Bumi plc if the share swap goes ahead, which would effectively see the company achieve a London Stock Exchange listing.
If the deal is successful it would mean further expansion for Vallar, which did its first deal in November 2010 when, along with the Bumi Resources swap, gained a controlling interest in another Indonesian company Berau Coal Energy. Both deals combined were thought to be worth $3 billion.
Two members from the Bakrie Group are a part of Vallar's board. Indra Bakrie is chairman of Vallar, while Ari Hudaya is chief executive.
The Bakrie Group was founded in 1942, and is run by second-generation Nirwan Bakrie and his family. The business was previously headed by his brother Aburizal who moved into politics in 2009. The 64-year-old was ranked the 10th richest person in Indonesia in 2010 by Forbes with a personal wealth of $2.1 billion.
Bumi Resources reported 2010 revenues of $1.51 billion, up from $874 million in 2009.