17th Apr 2015 17:00
LONDON (Alliance News) - Asia Resource Minerals PLC Friday said it has reached a settlement with the Financial Conduct Authority following an investigation into transactions that raised questions.
In a statement, Asia Resource Minerals said it had cooperated fully with the FCA's investigation and accepted the regulator's findings.
Asia Resource Minerals did not disclose the exact terms of the settlement, as the FCA is yet to publish a so-called statutory notice.
The company has previously said that its first-half results for 2014 included a provision of USD7 million relating to the investigation. Asia Resource Minerals has previously disclosed that the FCA had in effect identified breaches of listing rules and raised questions about its past procedures, systems and controls between June 28 2011 and July 19 2013.
"The financial penalty which is to be imposed is within the provision already made in the company's financial statements and forecasts, including the working capital forecasts for the open offer," Asia Mineral Resources said.
The FCA's investigation was initiated after Asia Resource Minerals in May 2013 informed the regulator of its concern that three previously undisclosed related party transactions had breached listing rules.
The company is awaiting approval from shareholders over a recapitalisation plan that would see a bond restructuring and an equity raising of USD100 million in the form of an open offer priced at 25 pence per share. That proposal is backed by financier Nat Rothschild, who is underwriting the deal.
Earlier this week, a vehicle supported by hedge fund Argyle Street Management and Singapore's Sinarmas Group said that they are considering a takeover offer for Asia Resource Minerals, setting out a potential alternative financial restructuring for the company.
If it makes the potential offer, the vehicle plans on underwriting a USD150 million equity fundraising priced at 28 pence per share. Its potential alternative would also involve a bond restructuring.
Argyle Street has a 4.7% stake in Asia Resource Minerals, while Rothschild controls about 18% of the company.
Shareholders are due to vote on the plan supported by Rothschild on Wednesday April 22.
Asia Resource Minerals shares closed up 5.7% at 28 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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