bumi-makes-a-move-on-australian-zinc-miner

Bumi makes a move on Australian zinc miner

The Indonesian company attempts to diversify its business, but Herald advises shareholders to take no action.
Indonesian PT Bumi Resources yesterday announced that it had offered A$455 million $403 million for Australian zinc miner, Herald Resources.

HeraldÆs main asset is the undeveloped Dairi leadzinc underground mining project in north Sumatra in Indonesia. The project, which is awaiting regulatory approvals from the Indonesian forestry department, is still to enter its development phase.

Herald has reportedly advised its shareholders to take no immediate action on the bid, which has been described as hostile and unsolicited. Bumi is offering A$2.25 a share, which is a 32% premium to the one-week volume weighted average of Herald shares up to December 11. Bumi argues that this will allow Herald shareholders the opportunity to realise full...
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