ACE obtains loan for ARMS acquisition
Saturday, July 4 2015 - 03:14 AM WIB
IDX-listed coal mining company PT Golden Energy Mines Tbk (GEMS), which is controlled by the Sinar Mas Group, said it has provided loan worth US$30 million for Asia Coal Energy Ventures Ltd (ACE), an investment company controlled by the group, to help finance the acquisition of LSE-listed mining firm Asia Resource Minerals plc (ARMS).
GEMS said in a statement Friday that the three-month loan, extendable to up to six months, carries interest rate of 10 percent plus LIBOR. The loan agreement was signed on Thursday.
ACE has earlier obtained another loan worth 97 million pound sterling from another Sinar Mas entity PT Sinar Mas Multiartha to help finance the acquisition of ARMS, which controls IDX-listed coal miner PT Berau Coal Energy Tbk.
The loans come after ACE received support from majority shareholders of ARMS for its proposed cash offer.
Editing by Reiner Simanjuntak