6th May 2014 16:48
LONDON (Alliance News) - Asia Resource Minerals PLC Tuesday said that a number of its major shareholders, including RACL and Borneo, have indicated a clear wish for the company's shares in PT Berau to be distributed in specie to shareholders.
The Indonesian thermal coal mining company, which completed its separation from Bumi PLC in March, said that this is 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.
However, the company said that other shareholders have indicated a preference to maintain the existing corporate and governance structure of the company.
"The board believes it therefore needs to undertake a careful and thorough review involving an active solicitation of shareholders' views on the future strategy for the company and an assessment of whether there are distribution options that would gain broad shareholder acceptance," the company said in a statement.
As previously announced, the company intends to distribute at least USD400 million of cash to shareholders, and is in the advanced stages of preparing a circular for shareholders to seek their approval for this to be implemented through a B-share scheme, which would deliver tax benefits for certain shareholders.
The company said Tuesday that it remains committed to implementing the distribution via the B-share scheme and the Relationship Agreement but has decided that before proceeding it should first determine whether to progress with a distribution of the company's shares in PT Berau.
Asia Resource Minerals said that in light of these developments, its is delaying its 2014 Annual General Meeting until June 27, given that the decision as to whether or not to distribute the PT Berau shares will have implications for the nature of the board that will seek re-election at this meeting.
It said that it is aiming to reach a decision on whether to proceed with the PT Berau share distribution, no later than June 3.
Asia Resource Minerals shares closed 2.6% higher Tuesday at 200.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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