Rothschild withdraws from race to acquire ARMS

By Ruli Setiawan

LSE-listed mining company Asia Resource Minerals Plc (ARMS) said that NR Holdings Ltd and SUEK Plc will not proceed with their earlier plan to counter the offer made by Asia Coal Energy Ventures Ltd (ACE) to acquire the company.

NR Holdings is owned by Nat Rothschild, a co-founder and key shareholder of ARMS, while SUEK is the parent of Russia?s coal giant OJSC Siberian Coal Energy Co.

?ARMS notes the statement of intention not to make an offer under Rule 2.8 of the Takeover Code by NRH and SUEK, which states that NRH and SUEK do not intend to make an offer for ARMS,? ARMS said in a statement Thursday.

?The Board of ARMS is engaging with Asia Coal Energy Ventures Limited (ACE) in relation to its cash offer to acquire the entire issued and to be issued ordinary share capital of the company not already owned by ACE and funds managed by Argyle Street Management Limited,? it added.

ACE, which is managed by Argyle and supported by Indonesian Sinar Mas Group, announced its plan to acquire ARMS last month by offering 41 pence per share, and a US$150 million equity injection to help restructure maturing debts. This was seen as an eleventh-hour attempt to foil a $100 million recapitalization plan announced earlier by Rothschild. Following the ACE offer, Rothschild moved to team up with SUEK to make a counter offer.

ARMS controls 84.7 percent shares of IDX-listed coal mining firm PT Berau Coal Energy Tbk.

Editing by Reiner Simanjuntak