ARMS retains option to proceed with Rothschild recapitalization plan

By Ruli Setiawan

LSE-listed Asia Resource Minerals Plc (ARMS) said Thursday it has secured the continuing option of proceeding with a recapitalization supported by key shareholder Nat Rothschild.

Nat Rothschild's offer to underwrite a US$100 million equity injection through an open offer of shares has been threatened by a takeover offer from Asia Coal Energy Ventures (ACE), which is backed up by the Indonesia's Sinarmas Group. That takeover offer requires shareholders to vote down Rothschild's proposed recapitalization but a meeting that had been scheduled for May 14 has been postponed by ARMS.

Rothschild's NR Holdings and SUEK PLC, the holding company for Russian coal producer OJSC Siberian Coal Energy Company, are considering a counter-offer.

Thursday's agreement with NR Holdings means ARMS will be able to resume the adjourned meeting by no later than July 31, an extension of two months from the previous date.

"Agreeing such an amendment to the subscription agreement allows the company to retain the option of proceeding with the recapitalization, which the board believes is important in the context of a number of prevailing uncertainties," ARMS said in a statement.

Editing by Reiner Simanjuntak