Asia Resource Minerals has said it will raise $100 million through a share issue at 25 pence each, a 79 per cent premium to the stock's closing price on Friday, and would be underwritten by a trust of Nat Rothschild.
Shares in the Indonesia-focused coal miner, formerly known as Bumi, rose as much as 64.3 percent on Monday, touching a high of 23 pence on the London Stock Exchange.
Mr Rothschild set up Bumi with Indonesia's prominent Bakrie family in 2010. The company's market value plummeted, dragged down by falling coal prices and bitter boardroom battles.
Mr Rothschild, the second-largest shareholder in ARMS with an about 18 per cent stake, offered in November to raise his stake, proposing to underwrite a share sale to help cut debt.
The group, with a market value of about $51 million, has a total debt of about $1 billion.
If the shares are not fully subscribed, Mr Rothschild's beneficial ownership interest would rise and the company will enter into a new relationship agreement with Mr Rothschild and the trust NR Holdings, ARMS said.
The company also said it would talk to its bondholders to extend the maturity of both $450 million notes due July 2015 and $500 million notes due July 2017.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article