Sinarmas wins support of Spinnaker Capital to acquire ARMS

Indonesia?s well-diversified Sinarmas Group has obtained additional support from a shareholder of LSE-listed mining firm Asia Resource Minerals plc in its plan to acquire the latter.

Kontan reported Friday that Asia Coal Energy Ventures Ltd (ACE), which is managed by Argyle Street Management Ltd, a Hong Kong-based firm controlled by Sinarmas and owns a 4.64 percent shares of ARMS, had on Thursday signed a letter of intent with Spinnaker Capital Ltd, under which the latter would vote in favor of ACE?s proposed acquisition of ARMS at an upcoming shareholders meeting. Spinnarker owns a 3.52 percent stake of ARMS.

ACE has proposed to acquire ARMS, the parent of IDX-listed coal miner PT Berau Coal Energy Tbk, offering 41 pence a share, valuing ARMS at about US$156 million. ACE also plans to restructure the debts of ARMS. The ACE proposal counters a recapitalization plan put forward by key ARMS shareholder, Nat Rothchild, who is also a co-founder of the company.

ACE has previously won the support of another ARMS shareholder, HT Investment, which is owned by Indonesian business tycoon Harry Tanoesoedibyo.

Earlier this week, ARMS said in a statement that the ACE cash offer is seen as the best option to secure the company?s future. (*)