Asia Resource Minerals Mulls Rothschild-Backed Takeover Bid

Asia Resource Minerals, an embattled Indonesian coal mining company, is considering a takeover by a vehicle backed by co-founder Nat Rothschild.

The U.K.-listed ARM said on Tuesday it was mulling a potential cash offer from a “special purpose vehicle” partly controlled by NR Holdings Limited, a trust of which Rothschild is the principal beneficiary, the Financial Times said.

In a statement, ARM said, “Further to its earlier announcement today, the Board of ARMS now notes the announcement of a possible cash offer to be made by a special purpose vehicle jointly owned and controlled by NRH and SUEK to acquire the entire issued and to be issued ordinary share capital of ARMS not already owned by the NR Concert Party.”

Earlier this month, Hong Kong hedge fund Argyle Street Management and Indonesia’s Sinarmas group announced they were considering a possible offer for the company, the report said.

NR Holdings, a trust beneficially owned by Rothschild, was said to be fleshing out a possible takeover offer with Russia-based SUEK PLC, the world’s fifth largest coal miner by proved and potential coal reserves, to buy out the remaining shares that Rothschild doesn’t own, according to the Wall Street Journal.

ARM has been hurt recently by the slump in the price of thermal coal.

The latest developments come ahead of a key shareholder vote scheduled for Wednesday on a separate refinancing backed by financier Rothschild, who controls about 18% of the company’s shares to Argyle Street’s 4.7%, Alliance News said.

ARM shares were up 3.1% at 29.25 pence on Monday, giving the company a market capitalization of about GBP142.7 million, according to the report.