Asia Resource Minerals Plc (ARMS), which split from Indonesia’s Bakrie family in a $501 million deal two months ago, said former chairman Samin Tan and other shareholders want to wind-up the coal producer.
Tan, who owns 47.6 percent of the company, and a number of other major investors “have indicated a clear wish” for its stake in PT Berau Coal Energy (BRAU), its only asset, to be distributed to shareholders, ARMS said today in a statement. Tan and the investors believe the move would curb the need for a London-based management team, reducing costs and allowing for a cash return of more than $500 million, it said.
“Certain other shareholders have, however, indicated a preference to maintain the existing corporate and governance structure,” ARMS said. “The board believes it therefore needs to undertake a careful and thorough review involving an active solicitation of shareholders’ views on the future strategy for the company.”
ARMS, formerly known as Bumi Plc, owns 85 percent of PT Berau, Indonesia’s fifth-biggest exporter of power station coal.
ARMS has delayed its annual general meeting until June 27 to consider the plan, it said. One of the company’s founders, Nathaniel Rothschild, has proposed former Leighton Holdings Ltd. head Wallace King as an independent non-executive director. Bob Kamandadu has also been proposed as a director.
Talks on appointing the two are at an advanced stage and they may take up positions shortly, ARMS said.
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