Herald: Independent directors recommend rejecting undervalued bid
Friday, August 28 2009 - 02:17 AM WIB
(West Perth, 28 August 2009)--The Independent Directors of Herald Resources Limited (Herald) today recommended that shareholders reject the takeover bid announced by PT Bumi Resources Tbk (PT Bumi) on 21 August 2009.
Commenting on the release of PT Bumi?s Bidder?s Statement, Herald Independent Director Andrew Wilson said: ?PT Bumi?s bid at 70 cents per share undervalues Herald.
Mr Wilson pointed out that the bid price is only a quarter of the $2.85 that PT Bumi paid just 12 months ago for control of the company.
?PT Bumi?s offer is also opportunistic because Herald?s main asset is the Dairi zinc and lead project in Indonesia. World zinc and lead prices are already back to their price levels when PT Bumi took control.?
The Independent Directors have appointed Beerworth & Partners as financial adviser and are in the process of engaging an Independent Expert to evaluate the offer. (end of release)