Antam, Shenzen bidding offers to Herald unconditional

The Jakarta Post , Jakarta | Sat, 06/21/2008 12:22 PM | Business

State-owned PT Aneka Tambang (Antam) and Shenzen Zhongjin Lingnan Nonfermet Co. Ltd., via its special purpose vehicle Tango Mining Pte. Ltd, on Friday said they provided unconditional terms for securing stakes in Australian mining firm Herald Resources.

Herald's directors would recommend its shareholders to accept Tango's offer if there was no superior proposal offered, said Herald in a statement.

"Herald shareholders will be paid the certain cash offer price of $2.8 per share within 12 days of acceptance, or 12 days from the date of this announcement," the company said.

The offer is slated to close on July 1 at 5 p.m., Perth time.

The decision by the Antam-led consortium was taken to help win the six-month battle against PT Bumi Resources, Indonesia's largest coal producer, in controlling Dairi lead and zinc mine in North Sumatra, which is owned by Herald.

Antam already controls 20 percent of shares in the Dairi project, and if the bid is successful, the company will hold a 52 percent controlling stake in the area, with the rest held by Shenzen.

Herald currently holds an 80 percent stake in Dairi, and controlling stakes in several other projects in Indonesia.

Antam, Indonesia's second largest nickel producer, and partner increased their bid to A$2.8 a share on Tuesday from $2.6 to $2.65 in a bid to secure 50.1 percent stake in Herald.

The bid rise matches a rival bid from Bumi, which earlier increased its bid on June 10 to $2.8.

The planned acquisition of Herald is part of Antam's efforts to diversify into other mineral commodities to reduce its dependence on nickel, which accounted for 80 percent of the company's sales last year -- valued at Rp 12 trillion, up from Rp 5.6 trillion a year earlier.