30/07/2008 - 17:24

Herald Resources takeover bid ends

30/07/2008 - 17:24

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The takeover bid for Herald Resources Ltd has drawn to an end with bidder PT Bumi Resources tbk allowing its $2.85 cash offer to lapse.

Herald Resources takeover bid ends

The takeover bid for Herald Resources Ltd has drawn to an end with bidder PT Bumi Resources tbk allowing its $2.85 cash offer to lapse.

In an announcement this afternoon, the directors in Herald noted that the cash offer was scheduled to close at 5pm today and urged its shareholder to immediately accept the offer.

The directors warned that if shareholders did not accept the offer, they would face an uncertain future in terms of market price and liquidity if Bumi did not reach the 90 per cent threshold for compulsory acquisition.

In its last notice to the market, Bumi, through its investment vehicle Calipso, said it held an 83.14 per cent interest in Herald.

The close of the offer ends a long takeover bid for Herald Resources which started in December last year when Bumi offered $2.25 for each share.

Rival bidder Antam-Zhongjin, an Indonesian-Chinese consortium, then entered the scene a month later, trumping Bumi by laying out a $2.50 cash offer for each share.

Both bidders then tried to out-do each other over the next six months to capture as many shareholder acceptances until late last month when a stalemate was reached when Antam and Bumi both offered $2.80 cash.

Both bidders then tried to out-do each other over the next six months to capture as many shareholder acceptances until late last month when a stalemate was reached with both companies offering $2.80 cash.

However earlier this month Bumi broke the standoff by increasing its offer to $2.85.

Antam then accepted the offer after allowing its takeover deadline to pass, pocketing nearly $110 million.

Both suitors were seeking to gain control of Herald's key asset, the $230 million Dairi zinc-lead project in north Sumatra, which is 20 per cent held by Antam. Herald is awaiting forestry approvals for the project.

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