Recently established Indonesian copper consortium Eastern Field Developments has announced that its shareholding in Finders Resources is now over 50 per cent, making it the majority shareholder.
Eastern Field, jointly owned by Indonesian companies Provident, Saratoga and Merdeka, first launched its plans to acquire Finders last October at a valuation of around $178 million at 23 cents a share, an offer Finders rejected.
ASX-listed Finders Resources, responsible for the Wetar copper project in Indonesia, claimed that its shares were worth more than 23 cents each – a report from Deloitte, for example, valued the company at around 31–35 cents at the time of the initial bid.
After making its offer unconditional last month due to a cited lack of interest from other bidders, Eastern Field has finally achieved its majority shareholding.
David Fowler, director of Eastern Field, said he was delighted with the result. He laid out the company’s plans for the future of Finders, including maximising long-term production and cashflow, appointing new board members, and extending the life of mines through government negotiation. Eastern Field also intends to keep Finders listed on the ASX.
“Eastern Field set about this journey six months ago because we had realised that we needed to increase our shareholding in Finders to affect change and to realise the value of our investment,” he said.
“Now that we are the majority owner of Finders shares and once our offer period has closed, we look forward to sitting down with Finders’ management to map out the way forward to make sure Finders delivers on the Wetar mine’s potential.”