Shares in Asia Resource Minerals (Arms) surged up by 80 per cent yesterday, following a statement from shareholder Argyle Street Management (ASML) that it is considering making a £200m takeover bid for the mining group through a new vehicle. The shares hit 29p before easing back to close at 27p.
ASML, funded by Indonesian business, the Sinarmas Group, is considering making the bid through a newly incorporated British Virgin Islands company called Asia Coal Energy Ventures (Ace).
However, City A.M. understands that Arms, previously known as Bumi, does not view the mooted offer as a serious. The firm reiterated yesterday that it had not been contacted by the potential bidder.
Arms shareholders are to vote next week on a recapitalisation plan put forward by major investor Nat Rothschild, who aims to renegotiate around $950m (£642m) of debt with the firm’s bondholders and inject $100m into the company.
Rothschild declined to comment yesterday. A source close to the situation said the meeting to approve the debt deal, already backed by several bondholders, will go ahead as planned on 22 April.