Golden Energy extends MOU on planned acquisition of ARMS

By Romel S. Gurky

SGX-listed Golden Energy and Resources Ltd said that it has reached an agreement with ASM Administration Ltd to extend for up to six months the duration of an April MOU, which provides the former exclusivity to directly invest in LSE-listed mining company Asia Resource Minerals Plc (ARMS).

?The company and ASM had on 28 July 2015 entered into a letter agreement to extend the duration of the MOU and the exclusivity period set out in the MOU, until the earlier of (a) six months from 20 July 2015, and (b) the execution of the definitive written agreement(s) for the proposed ACEV acquisition or the acquisition by the company of any of the target subsidiaries,? Golden Energy, previously known as United Fiber System Ltd, said in a statement Wednesday.

The company signed on April 15 an MOU with ASM, the sole owner of Asia Coal Energy Ventures Ltd (ACEV), a discretionary fund managed by Argyle Street Management Ltd, a Hong Kong-based hedge fund financed by the Sinar Mas Group, which also indirectly controls Golden Energy.

ACEV has recently completed the acquisition of ARMS, which controls more than 84 percent stake in IDX-listed coal miner PT Berau Coal Energy Tbk, thus allowing the former to become the new indirect controlling shareholder of the coal giant.

?The purpose of the extension is to, among other things, facilitate the discussions between the company and ASM on implementing a transaction structure for the acquisition by the company of ASM?s entire ownership of the issued and paid-up shares in ACEV or any of ACEV?s entire direct and/or indirect ownership of the issued and paid-up shares in the share capital of any one of the following entities:- ARMS, Vallar Limited, Vallar Holding Company Limited, Vallar Investments UK Limited or PT Berau Coal Energy Tbk (BCE),?Golden Energy explained.

Editing by Reiner Simanjuntak