ASX-listed Finders Resources has received an off-market takeover bid from Eastern Field Developments, valuing the Perth-based Indonesian copper miner at around $178 million.
Finders’ key asset in Indonesia is a majority stake in the Wetar copper project. It confirmed that a takeover offer had been received last Friday, but advised its shareholders to take no action.
Eastern Field is made up of a consortium of Indonesian companies, including Provident and Saratoga. It collectively owned a 19.8 per cent stake in Finders prior to making the bid.
The consortium is proposing to pay 23 cents each for the remaining shares in Finders.
Eastern Field director David Fowler said Provident and Saratoga determined their existing interest in Finders was too small in the context of their collective portfolios.
“This offer enables them to materially increase their shareholding in Finders. The offer also provides Finders shareholders with the opportunity to lock in certain all cash value while removing the Indonesian operational and regulatory risks associated with Finders’ Wetar project,” he said.
Fowler added: “In the event the offer is unsuccessful then Provident and Saratoga will review their Finders’ interest and may divest all their Finders shares and withdraw their involvement in Finders.”
Finders owns a 74.1 per cent interest in the Wetar operation, which produced almost 13,000 tonnes of copper cathode in the June half year.