Rothschild faces battle with Ace for Arms control

 
Caitlin Morrison
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Nat Rothschild is trying to take control of the coal company
ASIA Coal Energy Ventures (Ace) yesterday revealed that it has been backed by a major shareholder in Asia Resource Minerals (Arms) in its attempt to take over the company.

Investment management firm Spinnaker Capital, which owns around 3.52 per cent of the Indonesian coal company, has signed a letter of intent stating that it intends to vote in favour of a resolution that would allow Ace’s offer of 41p per share to go ahead.

The offer from Ace is up against a $100m (£65m) recapitalisation proposal from NR Holdings, which would give British financier Nat Rothschild control of the company.

Ace’s offer is conditional upon the approval of an agreement concerning the acquisition of RBI loans.

Around 70 per cent of Arms’ shareholders, including Rothschild’s investment vehicle, cannot vote on the RBI loans resolution, as they have a vested interest in taking control of the company.

Spinnaker, Arms’ sixth largest shareholder, is the largest shareholder voting on the resolution.

Meanwhile, Rothschild’s company yesterday hit out at Ace’s offer for Arms.

NR Holdings said Ace’s price of 41p per share “materially undervalues” the company.

The group also advised shareholders to await the opinion of the firm’s financial adviser as to whether the terms of Ace’s loan acquisition from RBI are fair and reasonable.

Rothschild declined to comment yesterday.

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