Cokal continues talks over Cakra?s unsolicited takeover proposal
Thursday, April 2 2015 - 01:51 AM WIB
ASX-listed global metallurgical coal group Cokal Limited said it has been engaged in detailed discussions with IDX-listed mining firm PT Cakra Mineral Tbk over the latter?s acquisition proposal.
Cokal announced in early March it has received an unsolicited non-binding and incomplete proposal in relation to a conditional off market takeover bid by Cakra for all of the ordinary shares of Cokal.
?Cokal has since then entered into detailed discussion with Cakra. The discussions have been progressing but have highlighted the need to jointly manage the process on both the Australian and Indonesian Stock Exchanges and under two company regulatory regimes,? the company said in a statement Thursday.
?We believe that as this is the first such transaction of this type between the two countries, there is no precedent. An understanding of these processes has been extremely important before reaching an agreement on a bid implementation agreement. Cokal therefore has not formed any opinion on the proposal,? it added. The company said there is no certainty any agreement will be reached.
Cokal has interests in five projects in Central Kalimantan and one project (which holds three exploration licenses) in West Kalimantan.
Cakra has operations in the province of West Sumatra and Central Kalimantan. The main activity of the company is a holding company conducting mining operations of iron ore, zircon sand and perform marketing services for their business group. The company has several subsidiary companies engaged in iron ore mining and mineral commodities trading. Cakra wishes to expand their mining operations and create a coal mining division. To achieve this Cakra has recently been active in acquiring a number of coal tenements including taking the following minority interest in Cokal?s exploration properties including PT Tambang Benua Alam Raya (25 %), PT Anugerah Alam Katingan (25 %), PT Anugerah Alam Manuhing (25 %), and PT Silangkop Nusa Raya (24.8%).
Editing by Reiner Simanjuntak