01/09/2009 - 10:21

Herald rejects Bumi takeover offer

01/09/2009 - 10:21

Bookmark

Save articles for future reference.

Herald Resources has urged shareholders to reject Jakarta-based PT Bumi Resources' takeover bid, saying the offer is only a quarter of the price the shareholder paid 12 months ago for control of the West Perth company.

Herald Resources has urged shareholders to reject Jakarta-based PT Bumi Resources' takeover bid, saying the offer is only a quarter of the price the shareholder paid 12 months ago for control of the West Perth company.

Last month, Bumi revealed plans to acquire the remaining shares in Herald it does not own for 70 cents cash for each share.

Bumi already holds an 84.2 per cent stake in Herald, acquired through a protracted takeover battle some 12 months ago. Bumi had paid $2.85 for each Herald share.

In an announcement today, the independent directors of Herald recommended shareholders reject the latest bid, saying the offer is significantly undervalued.

"PT Bumi's offer is also opportunistic because Herald Resources' main asset is the Dairi zinc and lead project in Indonesia. World zinc and lead prices are already back to their price levels when PT Bumi took control," Herald said.

The company added that it is in the process of engaging an independent expert to evaluate the offer.

Shares in Herald were unchanged at 73 cents at 12:00 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options