Gold and base metals explorer Herald Resources Ltd, which is developing the Dairi zinc and lead project in north Sumatra in Indonesia, has advised shareholders to take no action over a takeover offer from Indonesia's PT Bumi Resources Tbk.
PT Bumi Resources Tbk on Friday last week made an offer for all the shares in Herald Resources that it does not already own, at 70 cents per share. Calipso Investment Pte Ltd, a wholly-owned subsidiary of Bumi, currently holds 84.2 per cent of Herald's issued shares.
Calipso said it considers the likelihood of a competing bidder for Herald emerging to be remote. PT Bumi said on Friday that the offer price of 70 cents per share represented a substantial premium to Herald's recent trading levels.
Bumi president director Ari Hudaya had said that the all-cash offer provided Herald shareholders with a compelling opportunity to exit their investment.
The independent directors will evaluate this offer and the underlying value of the Dairi project, the company and its cash flows, from the perspective of the best interests of all shareholders. Herald shares closed on Friday up 15 cents at 55 cents.
Sunday, August 23, 2009
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