Indonesia’s PT Bumi Resources has extended its take-over offer for all ordinary shares for Australian miner and Explorer Herald Resources.
PT Bumi made the initial take-over offer on 12 December at $2.25, but was superseded by an offer from a consortium of Chinese and Indonesian interests which offered $2.50 per share.
Herald Resources’ board consequently recommended the superior offer, which valued the company at $504.8 million.
State-controlled Indonesian mining group Pt Antam and Chinese government-backed miner Shenzen Zhongjin Lingnan Nonfemet made a $2.50 per share all cash conditional takeover offer through a Singapore-based vehicle Tango Mining at the end of January.
But today PT Bumi, through its take-over vehicle Calipso Investment Pty Ltd advised that it has extended its offer to 7 May 2008 from previously stated 18 April 2008, sparking speculation it would come up with a higher offer.
The primary and most attractive asset of Herald Resources is an 80% interest in the high-grade zinc/lead Dairi Project in Indonesia.
The bidding war has provided share price support in a volatile market.
Trading around $1.83 before the bid from Calipso on 11 December, Herald shares has been trading at an average of $2.506 ever since, a premium of 36%.
Following the takeover announcements, shares in HER hit a 52-week high of $2.76 during intraday trading.
HER shares closed at $2.74.
