Home Case study Bumi: a cautionary tale

Bumi: a cautionary tale

by AppliedCG

How Nat Rothschild’s attempts to improve corporate governance in emerging markets (and so achieve much higher valuations) met with the Bakries’ narrow goal of shoring up the ailing financial position of their businesses. An ACG case study in the need for awareness and congruence of goals.

A clash of goals where ethics didn’t win

“Bumi Resources, the Bakries and the term ‘good governance’ shouldn’t be used in the same sentence.”

The idea: changing an ethical culture

In 2010, Nat Rothschild, son of Lord Jacob Rothschild the successful financier, and scion of the famous banking family, created a cash shell called Vallar plc which raised just over £700m in an IPO on the London Stock Exchange.

His aim was to invest…

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