19th Feb 2014 14:19
LONDON (Alliance News) - Asia Resource Minerals PLC said Wednesday that its former partner, the Bakrie group, had asked for a further extension for its separation transaction as well as potentially revised terms after it failed to raise the amount required to complete the separation under the original terms.
Asian Resources Minerals said Bakrie had told it that it had raised USD163 million, not meeting the USD228 million required to complete the separation on its original terms.
The Indonesian thermal coal mining company, formerly Bumi PLC, is undergoing a drawn out separation process with the Bakrie Group, and the process has already been pushed back three times after talks with Bakrie over delays were not concluded.
In December, shareholders of Bumi, which was founded by Nat Rothschild, approved the separation of the company after a long power struggle, and it changed its name to Asia Resource Minerals.
Under the deal, Asia Resource Minerals retained control over Berau, while the influential Bakrie family will hold the Bakrie Group and BT Bumi Resources Tbk.
Additionally, Asia Resource Minerals continues to be in conflict with former director Rosan Roeslani over cash and assets he may owe the company. Roeslani, who is connected to the Bakrie group, raised a number of issues earlier in the month related to a previously signed agreement over the repayment of USD173 million worth of funds to Bumi, stating that any outstanding liability to transfer cash or assets has been extinguished.
Barkri Wednesday asked for the company to consider revising the terms of the separation, suggesting that it reduces the number of PT Bumi Resources Shares to be sold to a 25.4% interest in Bumi Resources, rather than the 29.2% interest it currently holds, with a proportionate reduction in the consideration paid to Asian Resource Minerals to USD436 million.
This would be made up of USD50 million that has already been paid across the company USD223m to be paid by Borne to Bakrie for the acquisition of 57.4 million shares in Asian Resource Minerals and the money it has now raised.
Asian Resource Minerals said that the board's independent committee intends to agree to the further extension, in order to allow time for the possible revised terms to be considered in further detail, and for those terms to be discussed with the UK Takeover Panel and UK Listing Authority.
The independent committee also said that the revised terms would still be in the best interest of shareholders.
Shares in Asia Resource Minerals PLC were trading down 0.7% at 238.00 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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