ARMS says it?s studying offer made by ACE
Friday, May 8 2015 - 01:05 AM WIB
Asia Coal Energy Ventures Ltd (ACE), an investment vehicle backed by Indonesian conglomerate Sinar Mas Group, finally made on Thursday its formal offer to acquire LSE-listed Asia Resources Minerals (ARMS).
ARMS, which doesn?t seem happy with the planned acquisition by ACE, said in a statement on Thursday that ACE did not engage with the company in respect of the offer prior to the announcement.
?The company is currently analyzing the ACE Cash Offer announcement and will provide an update in due course,? ARMS said.
ACE has taken almost a month mulling a bid and has finally pulled the trigger with a 41 GBP a share offer, a 173.3 percent premium to the share price the night before it first flagged its interest in making a bid. The terms value ARMS at about 99 million GBP. ACE is competing with ARMS key shareholder Nat Rothschild in acquiring the LSE-listed mining firm, which controls IDX-listed coal giant PT Berau Coal Energy Tbk.
The bidder, which also has the support of fund manager Argyle Street Management Limited (ASML), plans to implement a US$150 million equity injection into ARMS, subject to the support of the ARMS board, at no less than 28 GPB per share.
ACE also intends to implement a bond restructuring on much the same commercial terms as the one being touted by the current ARMS management.
Editing by Reiner Simanjuntak