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Argyle and Sinarmas offer to buy coal miner ARMS

Indonesia's Sinarmas Group and hedge fund Argyle Street Management have offered to buy coal mining firm Asia Resource Minerals Plc, valuing it at 98.8 million pounds ($150.5 million), ARMS said on Thursday.

The offer was made through Asia Coal Energy Ventures Ltd (ACE), a vehicle set up to buy ARMS, managed by Argyle, and funded by Sinarmas.

Argyle already holds a 4.65 percent stake in ARMS.

ARMS's stock closed up 5.8 percent at 40.5 pence on the London Stock Exchange on Thursday, slightly below ACE's offer price of 41 pence per share.

ARMS said it was analysing the offer and would provide an update in due course.

ARMS, previously known as Bumi Plc, has been struggling with boardroom battles and tumbling coal prices.

ACE's bid risks scuppering a long-awaited restructuring aimed at turning round its fortunes. That revamp is backed by ARMS co-founder Nathaniel Rothschild and could see the scion of the banking dynasty -- and ARMS' No.3 shareholder -- increase his stake of about 18 percent via a new share issue.

Ravenwood, a company connected to large ARMS shareholder Samin Tan, but now controlled by his creditor, Austrian bank Raiffeisen (RBI), has agreed to vote in favour of ACE's offer, ACE said in a statement.

Ravenwood controls about 24 percent of ARMS.

However, ACE has separately made an offer for some assets held by RBI, including the stake in ARMS.

This complicates the process because Britain's takeover regulator has asked ARMS to appoint an independent adviser to assess this separate offer, before ACE's bid can be put to ARMS' other shareholders.

A spokesman for NRH, a trust tied to Rothschild, said he did not think the adviser would deem this separate offer fair.

ACE first indicated in mid April its interest to make an offer for ARMS.

Subsequently, ARMS also received potential interest jointly from NRH and SUEK Plc, the parent of Russia's Siberian Coal Energy Co.

ARMS then delayed to May 14 a shareholder meeting intended to approve the recapitalisation plan backed by Rothschild, citing the takeover interest.

ACE's offer is conditional on ARMS shareholders voting against the share issue. ACE said it would invest $150 million in ARMS and implement a bond restructuring.

Since ACE first expressed its interest, ARMS shares have gained more than 150 percent.

($1 = 0.6566 pounds)

source: http://www.reuters.com