Herald recommends shareholders take no action on Bumi?s offer

The independent directors of Australian zinc miner Herald Resources Limited asked the firm's shareholders to take no action in response to PT Bumi Resources' offer to buy all their shares.

Under the offer, Calipso Investment Pte Ltd, a wholly owned subsidiary of Bumi, is offering $0.70 cents cash per share. PT Bumi currently owns 84.2 percent of Herald Resources shares and would to buy the remaining shares owned by the public.

?This is an opportunistic unsolicited takeover offer by PT Bumi and came as a surprise to the independent Directors. We urge shareholders to take no action until the offer is reviewed in detail by the independent Directors over the next few weeks,? Herald Resources' independent director Andrew Wilson said in a statement on Monday.

?The Independent Directors will evaluate this offer and the underlying value of the Dairi project, the company and its cash flows, from the perspective of the best interests of all shareholders.

?Although the offer is a premium to the traded price for the last 6 months it is only a quarter of the PT Bumi takeover price in July last year. Considering the significant changes to the economic landscape since PT Bumi acquired its majority stake for $2.85 per share, the board will evaluate whether this offer is reasonable for the minority shareholders in Herald Resources.? (Denny)