LONDON (Alliance News) - Asia Mineral Resources PLC Monday said that a formal takeover offer is yet to materialise for the coal miner from a vehicle backed by hedge fund Argyle Street Management Ltd and Indonesia-based Sinarmas Group.
Vehicle Asia Coal Energy Ventures Ltd's potential offer, which it revealed just over one week ago, came ahead of a key shareholder vote scheduled for Wednesday on a separate refinancing backed by financier Nat Rothschild, who controls about 18% of the company's shares to Argyle Street's 4.7%.
Rothschild has offered to underwrite a USD100 million equity fundraising through an open offer priced at 25 pence per share as part of a broader refinancing that would also involve the restructuring of Asia Resource Minerals' debt.
Asia Coal Energy Ventures maintains that it intends to make an offer for Asia Resource Minerals. Such as offer would be funded by Sinarmas Group, which is controlled by the Widjaja family, according to Asia Coal Energy Ventures, but sources close to Asia Mineral Resources have cast doubt on the reality of the vehicle's offer.
Last week's announcement indicated that Asia Coal Energy Ventures would be willing to pay 41 pence per share for the Asia Resource Minerals shares not already owned by Argyle Street. That possibility was mooted alongside alongside proposals for an equity fundraising of USD150 million at 28 pence per share and a debt restructuring ahead of the need to repay USD450 million of notes in July this year and USD500 million in March 2017.
A source close to Asia Resource Minerals said that Asia Coal Energy Ventures' move appears to be designed to derail the refinancing deal already on the table. Questions have also been raised as to why the potential bid is being made through a British Virgin Islands-based shell company, while Asia Coal Energy Ventures sources have pointed to Sinarmas Group's position in its corner as evidence that the intention to launch a bid is serious.
"To date, no offer has been forthcoming. The company will inform its shareholders if and when any such offer is received, as to the details thereof notified to the company and, following due consideration, as to the board's recommendation in relation thereto," Asia Resource Minerals said in a statement.
A spokesperson for Asia Coal Energy Ventures said the vehicle intends to make an offer and that discussions with Asia Resource Minerals shareholders are ongoing.
A key element at play is that voting rights over 23.8% of the voting rights in Asia Resource Minerals were transferred to Austria-based Raiffeisen Bank from Samin Tan in October 2014. Tan, an Indonesian investor who used to be the chairman of Asia Resource Minerals, is still able to control indirectly a 23.8% stake.
Asia Resource Minerals, which used to be known as Bumi PLC, was co-founded by Rothschild and the Bakrie family of Indonesia. The Bakrie family made an exit from the company in 2014, when it sold its 23.8% interest to Tan.
The company, which has been hurt by the slump in the price of thermal coal, indirectly owns 84.7% of Berau, which in turn owns 90% of Berau Coal, a producer of thermal coal in Indonesia.
Asia Resource Minerals shares were up 3.1% at 29.25 pence on Monday, giving the company a market capitalisation of about GBP142.7 million.
The shares, which had opened lower, have traded within a range of 25.53p and 27.50p on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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