20th Jan 2014 15:09
LONDON (Alliance News) - Asia Resource Minerals Monday said it has agreed to an updated timetable for its separation transaction, with a new deadline of February 21.
The Indonesian thermal coal mining company said the Bakrie Group has agreed that a USD50 million payment that's part of the separation, currently held by a third party, will be transferred to Asia Resource Minerals by January 23 and will only be repayable if the company is in material breach of its obligations under the amended PT Bumi Resources share sale and purchase agreement.
Asia Resource also said that a new condition has been agreed which states that no general meeting of PT Bumi Resources to consider the deal will be held before completion.
Under the new timetable there is also the possibility of a further one month extension of the deadline under limited and exceptional circumstances.
Last week, the transaction deadline had to be pushed back twice after talks with Bakrie over delays weren't concluded, but now both parties have set an updated timetable.
The company, which was founded by Nat Rothschild, was previously called Bumi PLC. However, in December shareholders 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, an Indonesian thermal coal producer which is expected to produce 23 million tonnes of coal in 2013, 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.
Asia Resources Minerals shares were up 7.0% to 236.75 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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