11th May 2015 11:26
LONDON (Alliance News) - Asia Coal Energy Ventures, a vehicle funded by Indonesia's Sinarmas Group, Monday said an investor with a stake of about 2% in Asia Resource Minerals PLC intends to give its backing to a key vote required for the vehicle's takeover offer for the Indonesian coal mining company.
Managed by Hong Kong-based Argyle Street Management Ltd, a hedge fund with a 4.65% stake in Asia Resource Minerals, Asia Coal Energy Ventures has made a GBP98.8 million takeover offer for Asia Resource Minerals, in a blow to financier Nat Rothschild who has his own vision for the future of the company he founded. He is considering a counter-offer with SUEK PLC, the holding company for Russian coal producer OJSC Siberian Coal Energy Company, through his NR Holdings vehicle.
The battle for control of Asia Resource Minerals comes at a critical time for the company, which has a looming bond repayment of USD450 million due in July. Its ability to pay has been compromised by low coal prices.
In a statement, Asia Coal Energy said that HT Investment Development Ltd, an investor previously known as Flaming Luck Investments Ltd and beneficially owned by the Tanoesoedibjo family of Indonesia, has signed a letter confirming its intention to vote in favour of a proposal that would be put forward at a so-called Rule 16 General Meeting of shareholders in Asia Resource Minerals and to vote down "any resolution which (among other matters) may prevent or impede the passing of the Rule 16 Resolution".
HT Investment is interested in three million shares in Asia Resource Minerals, which equates to about 2% of the 241.0 million shares Asia Resource Minerals has in circulation.
The Rule 16 Resolution forms a key part of the bid.
Asia Coal Energy needs the independent shareholders of Asia Resource Minerals to approve an agreement for it to buy loans advanced by Austria's Raiffeisen Bank to a number of companies associated with the Indonesian coal miner's former chairman, Samin Tan, who is working in concert with Argyle and the vehicle it manages.
The term of the loans acquisition deal must be deemed "fair and reasonable" by Asia Resource Minerals' independent financial adviser, the investment bank NM Rothschild & Sons, which is independent of Nat Rothschild.
Asia Resource Minerals shares were up 0.5% at 39.83 pence on Monday shortly after midday in London.
By Samuel Agini; [email protected]; @samuelagini
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