ARMS: Majority funds for separation have been transferred
Thursday, March 20 2014 - 01:08 AM WIB
LSE-listed Asia Resources Minerals Plc (ARMS) said that it has been informed by the Indonesian Bakrie Group that the majority of the funds required to complete the US$501 million separation plan have been finally transferred into holding accounts at the bank providing the escrow account.
?The Bakrie Group has informed the company that the remaining balance will be available to allow for completion still to occur on 21 March. The company has therefore agreed amendments to the PT Bumi Share Purchase Agreement to reflect this,? ARMS said in a statement obtained late Wednesday.
On February 26, ARMS said that the Bakrie Group has raised the full US$228 million (which combined with the $50 million already in the company's bank account and $223 million from the sale of Bakrie Group's indirect stake in ARMS to RACL is equal to $501 million), and was set to complete the separation transaction on March 21.
ARMS, previously known as Bumi Plc, was co-founded by the Indonesian Bakrie family and Nathaniel Rothschild in 2010. But relations between the two then soured, with Bumi hit by board room fights, wrongdoing allegations, and falling coal prices, leading to the proposed split with the Bakries, under which the latter will divest its 23 percent stake in ARMS and buyback ARMS?s 29 percent ownership in IDX-listed coal miner PT Bumi Resources Tbk.
The planned separation has been delayed for several times.
Editing by Reiner Simanjuntak