Jakarta. An investment vehicle supported by Indonesia’s Sinar Mas Group has secured 52 percent support from the shareholders of its bid target Asia Resource Minerals to reject a rival $100 million offer made by financier Nathaniel Rothschild, its partner said on Wednesday.
On Tuesday the ARMS board of directors decided to adjourn indefinitely a meeting to vote on the $100 million recapitalization plan proposed by NR Holdings, the trust of Rothschild, potentially holding up any decision on a rival bid by Asia Coal Energy Ventures (ACE), a vehicle managed by hedge fund Argyle Street Management and funded by Indonesia’s Sinar Mas Group.
“We are actually not aware of any shareholder who is going to vote yes, and they must know that as well,” Argyle Street Management Limited Partner Kin Chan told Reuters.
Chan said ACE has 52 percent of votes opposing NR Holdings’ proposal and its backers include Raiffeisen Bank International, Standard Chartered and former ARMS chairman and Indonesian coal business tycoon Samin Tan.
Rothschild, the second-largest shareholder in ARMS with an approximately 18 percent stake, offered in November to raise his stake, proposing to underwrite a share sale to help cut debt.
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