19th May 2014 13:32
LONDON (Alliance News) - Asia Resource Minerals PLC Monday said it plans to return USD465 million to shareholders through a B share scheme and will not distribute shares in its subsidiary PT Berau in specie to shareholders.
The Indonesian thermal coal mining company, formerly known as Bumi PLC, made the statement in response to calls earlier in May by its major shareholders, including RACL and Borneo, to distribute the in specie share payments on the basis that they believe the simplified ownership would ultimately remove the need for a London based management team and listed vehicle, thereby reducing costs, increasing shareholder value and potentially allowing a distribution of cash in excess of USD500 million.
When the company separated from Bumi in March, it committed to return at least USD400 million of cash to shareholders.
On Monday, the company said it actively solicited shareholders views on the in specie share distribution and now it does not believe that there is consensus among the shareholders which would allow the process to be carried out at this time.
However, it said that many shareholders indicated that they want a share payment as soon as possible and so it now plans to move forward on its proposed B-share scheme to return USD465 million to its shareholders.
The company added that it continues to be in discussions with shareholders over alternative strategic options for its development and it plans to allow shareholders to vote on the GBP465 million payment on June 27 at its delayed annual general meeting.
Asia Resource Minerals shares were down 0.4% to 193.00 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
ARMS.L