Indonesia's Borneo says Bakries agree compensation for Bumi

Indonesia's Bakrie family has agreed in principle to pay financial compensation via its investment vehicle Long Haul Holding Ltd to coal miner PT Borneo Lumbung Energi for a $1 billion investment in Bumi Plc , Borneo's CEO said on Thursday.

Indonesian tycoon Samin Tan, via his coking coal miner Borneo, pulled the Bakrie Group from the brink of default when he invested $1 billion in London-listed miner Bumi Plc in January, only to see the value of the investment crumble.

After months of tensions between leading shareholders of Bumi Plc, the Bakrie Group earlier this month surprised the Bumi board by proposing a $1.38 billion deal to swap shares and buy-back coal assets that could dismantle the company they created with financier Nat Rothschild.

(Reporting by Janeman Latul; Editing by Neil Chatterjee)