Bumi to acquire Herald Resources

The largest shareholder in West Perth-based Herald Resources has announced plans to acquire the remaining shares of the WA company by way of a formal off-market takeover bid, subject to conditions and approval from the Foreign Investment Review Board (FIRB).

Jakarta-based PT Bumi Resources currently holds an 84.2 per cent stake in Herald through its wholly-owned subsidiary, Calipso Investment Pte Ltd.

Bumi president director Ari Hudaya said he believed the all-cash offer, offering 70 cents for each share it doesn't already own, provides Herald shareholders with a compelling opportunity to exit their investment.

Calipso considers the likelihood of a competing bidder for Herald emerging to be remote.

In January, Herald stopped port and road construction activities due to a protracted delay in gaining forestry approval for its valuable Dairi zinc-lead project in Indonesia.

At that stage the company said its decision had no material impact on the project schedule, which was entirely dependent on receiving forestry approval.

The company was the centre of a bidding way for most of 2008 between consortium Antam-Zhongjin and Bumi.