Finders Resources has released a lengthy target statement on the ASX this morning urging shareholders to reject the “inadequate” and “opportunistic” takeover offer made by Indonesian copper consortium Eastern Field Developments. The company, made up of large Indonesia operators such as Saratoga, Provident and PT Merdeka Copper Gold, offered a $178 million buyout in October for Finders Resources, in which it already owned a 19.8 per cent share.
Finders’ major Indonesian interest is the Wetar copper project, whose main component consists of a 25,000 tonnes per annum operating plant (as well as a neighbouring 3000 tonnes per annum plant). Finders had already voiced its rejection of Eastern Goldfields’ 23 cents per share offer in previous statements, but this new target statement is by far the most comprehensive.
Though the report is lengthy, Finders summarised its rejection in six points; it called the offer inadequate and not reflecting fair value; the offer was considered neither fair nor reasonable by an independent expert; the timing is opportunistic; the offer may deprive shareholders of value opportunities; it is not reflective of the strength of the copper market; and the offer is only conditional.
Eastern Fields was established in September 2017 for the sole purpose of the takeover offer. The full report by Finders can be read here.