9th Feb 2015 07:59
LONDON (Alliance News) - Asia Resource Minerals PLC Monday said a vehicle of financier Nat Rotschild has agreed to underwrite a USD100 million equity issue as part of a broader recapitalisation of the group, which will now look to restructure debt issued by subsidiary Berau in order to support the equity injection.
Nat Rothschild, who co-founded the company with the Indonesian Bakrie family that is no longer a shareholder, owns a 17% stake in Asia Resource Minerals.
In a statement, the Indonesian coal miner said the agreement with Rothschild includes three key terms. The first of these is that the issue price under the equity issue is to be set at 25 pence per share, a 79% premium to the closing price of 14 pence on Friday.
The equity fundraising also is conditional on shareholder approval, as well as holders of Berau's USD450 million notes due July 2015 and USD500 million notes due July 2017 agreeing to a maturity extension.
NR Holdings, a Nat Rotschild trust, has agreed to inject the full USD100 million, Asia Resource Minerals said, but the offer is planned to be structured to allow other shareholders to participate on the same basis.
If other shareholders do not take up the chance to inject funds into the company in exchange for equity, then Rotschild's stake in Asia Resource Minerals, through NR Holdings, would increase.
Asia Resource Minerals said it will enter a "new relationship agreement" with Rotschild and the trust, and seek a whitewash from other shareholders under takeover rules so that Rotschild's stake may exceed 30% without forcing him to make an offer for the entire company.
"The company is now in a position to negotiate an appropriate solution to the Berau notes due in 2015 and 2017 to create a more stable capital structure for the benefit of all stakeholders," Chairman Wal King said in a statement."
"The company intends to engage with noteholders as soon as possible to secure a transaction while the offer of new equity is on the table."
By Samuel Agini; [email protected]; @samuelagini
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