(Reuters) - Asia Coal Energy Ventures Ltd (ACE) and hedge fund Argyle Street Management Ltd offered to buy the stake they do not already own in Asia Resource Minerals Plc (L:ARMS), valuing the coal miner at 98.8 million pounds.
ARMS's stock was up 4.6 percent at 39.8 pence, below the offer price of 41 pence per share, at 1121 GMT on the London Stock Exchange.
ARMS, previously known as Bumi Plc, has been struggling with boardroom battles and tumbling coal prices. The company recently renegotiated debt and announced a share issue to turn its fortunes around.
The miner said it was analysing the offer and that it would provide an update in due course.
ACE – managed by Argyle and funded by Indonesia's Sinarmas Group – had, in mid April, indicated its interest to make an offer for ARMS.
Argyle holds a 4.65 percent stake in ARMS.
Subsequently, ARMS also received potential interest jointly from NR Holdings, a trust controlled by British financier Nat Rothschild, and SUEK Plc, the parent of Russia's Siberian Coal Energy Co.
ARMS then delayed to May 14 a general meeting intended to approve the share issue, citing the potential takeover interest.
An ACE spokesman said on Thursday that the company's offer was conditional on ARMS shareholders voting against the share issue.
ACE and Argyle said they would invest $150 million in ARMS and implement a bond restructuring.
Ravenwood, which controls about 24 percent of ARMS shares, agreed to vote in favour of its offer, ACE said in a statement.
Since ACE first expressed its interest, ARMS shares have gained 155 percent through Wednesday's close.