30/09/2009 - 11:37

Herald recommends enhanced Bumi offer

30/09/2009 - 11:37

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Directors of Herald Resources have unanimously recommended shareholders accept an increased offer of 93 cents per share from its majority shareholder, Jakarta-based PT Bumi Resources' wholly-owned investment vehicle, Calipso Investment Pte Ltd.

Herald recommends enhanced Bumi offer

Directors of Herald Resources have unanimously recommended shareholders accept an increased offer of 93 cents per share from its majority shareholder, Jakarta-based PT Bumi Resources' wholly-owned investment vehicle, Calipso Investment Pte Ltd.

This comes after the West Perth-based Herald repeatedly rejected Bumi's takeover offer on two consectutive days at the start of this month saying the earlier offer was only a quarter of the price the majority shareholder paid 12 months ago for control of the mining company.

Herald Independent director, Andrew Wilson said Calipso's increased offer of 93 cents per share represented a one-third increase on its original offer.

"It is apparent that there will not be a competing bid since Calipso is the majority shareholder," he said in a statement.

"In the circumstances, the Independent Directors recommend that Herald shareholders accept the revised offer.

"The Calipso revised offer is less than the valuation range of the Independent Expert, Lonergan Edwards, but is the highest price Calipso will offer."

 

 

Full announcement below:


 

Herald Resources Independent Directors unanimously recommend increased Calipso offer at A$0.93

The Herald Resources Limited ("Herald") Independent Directors today announce that Calipso Investment Pte Ltd. ("Calipso") has agreed to increase its offer price to A$0.93 per Herald share and that they will unanimously recommend that Herald Shareholders accept the revised offer in the absence of a superior proposal.

The Herald Independent Directors intend to accept Calipso's Offer for any Herald shares they own or control and will accept the Calipso Offer for all Herald shares issued on the exercise of any options they own or control before Calipso's Offer closes, in each case in the absence of a superior proposal.

The Calipso Offer remains subject to a minimum acceptance condition and approval under the Foreign Acquisitions and Takeovers Act 1975 ("FIRB").

Herald Independent Director, Mr Andrew Wilson, said, "Calipso's increased offer of A$0.93 represents a one-third increase on its original offer and it is apparent that there will not be a competing bid since Calipso is the majority shareholder. In the circumstances, the Independent Directors recommend that Herald shareholders accept the revised offer."

"The Calipso revised offer is less than the valuation range of the Independent Expert, Lonergan Edwards, but is the highest price Calipso will offer."

The President Director of PT Bumi Resources Tbk (IdSX: BUMI) ("Bumi"), Mr Ari Hudaya, said "Bumi is pleased to provide Herald shareholders the opportunity to realise value for their investment in Herald at an attractive price. We encourage all shareholders to accept the Offer as soon as possible so they can be paid the $0.93 per share in accordance with the terms of the Offer."

The Offer is currently scheduled to close on Monday 12 October 2009. However, the Offer will be automatically extended under the Corporations Act to Tuesday 20 October as a result of Calipso increasing its Offer price in the last week of the Offer.

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