26 Feb 2014 17:22
26 February 2014
For Immediate Release
Asia Resource Minerals plc ("ARMS" or the "Company")
Update on Separation Transaction
On 19 February, the Company announced that it had extended the Separation Transaction until today to consider revisions to the terms of the transaction proposed by the Bakrie Group. The Company has been doing this alongside engagement with the Bakrie Group and Borneo and consultation with its shareholders and UK regulators. Today, the Bakrie Group informed the Company that it is now able to raise the full US$228m (which combined with the US$50m already in the Company's bank account and US$223m from RACL's purchase of the Bakrie Group's indirect stake in ARMS is equal to US$501m) and therefore is now able to complete the transaction on its original terms and that it will be able to do so by 21 March.
The Company has now agreed amendments to the PT Bumi Share Purchase Agreement such that the Bakrie Group is required to fund US$451m (being US$501 less US$50m) into escrow by 19 March. Closing would then be expected to occur by 21 March. The Company understands that RACL has extended the expiry date of its financing arrangements to 23 March 2014.
The Company has decided that it will not be extending the transaction again and therefore if funding is not received into escrow by 19 March at the latest then the Separation Transaction will terminate. In this context, the Company is continuing to investigate alternative options to the Separation Transaction.
- ENDS-
For enquiries, please contact:
Asia Resource Minerals plc
Sean Wade +44 (0) 20 7201 7511 | RLM Finsbury
Ed Simpkins / Charles O'Brien +44 (0) 20 7251 3801 |