02/09/2009 - 14:18

Herald stakeholder accepts Bumi offer

02/09/2009 - 14:18

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Herald Resources has reiterated its rejection of a takeover bid by Jakarta-based PT Bumi Resources despite another major shareholder advising it will accept the offer.

Herald Resources has reiterated its rejection of a takeover bid by controlling shareholder Jakarta-based PT Bumi Resources despite another major stakeholder advising it will accept the offer.

In a statement today, Herald said shareholder New Age World had advised it would accept the cash offer for its 8.2 per cent holding.

Bumi already holds an 84.2 per cent interest in Herald and given the new development, it could move to compulsorily acquire the remaining shares it does not own in the West Perth company if it also achieves a 75 per cent acceptance level in the current takeover.

Despite the new development, Herald's independent directors pointed out that Bumi has not yet made a formal offer and so it not yet able to accept New World's shares.

Bumi is offering 70 cents cash for each Herald share, around a quarter of the price it paid for in its first takeover bid some 12 months ago.

Shares in Herald closed untraded at 75 cents.

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