Cokal in talks for possible China IPO
Friday, January 15 2016 - 04:27 AM WIB
ASX-listed coking coal mining firm Cokal Limited said on Friday Hong-Kong?s financial company BM Intelligence has proposed for an initial public offering (IPO) and listing of Cokal?s Singapore subsidiary Cokal Holdings Pte Ltd shares on the Shanghai Stock Exchange.
Cokal, which is developing the BBM coking coal project in Indonesia?s Central Kalimantan Province, said that under the proposed China IPO, the company could raise between US$50 million and $100 million in proceeds.
?The Interest from BM Intelligence has arisen particularly now that Indonesia has recently become a prime country for Chinese foreign investment,? Cokal said in a statement, adding that BM Intelligence has assisted over 80 companies in successful listings.
Cokal Holdings Pte Ltd ultimately holds all Cokal interests in Indonesia. ?The percentage ownership retained by Cokal will depend on the final pricing but it is Cokal?s aim to retain a majority percentage of Cokal Holdings Pte-Ltd,? the company added.
The offer from BM Intelligence comes amid uncertainty over an earlier offer made by IDX-listed mining firm PT Cakra Mineral Tbk, which intends to acquire the entire shares in Cokal.
?The company's securities have been suspended pending clarification by Cakra of its intention to make a fresh takeover offer to acquire all of the shares of the Company. Cakra's recent offer closed on 15 November 2015,? Cokal said.
?Based on various meetings and discussions with Cakra, Cakra's earlier offer lapsed due to internal commercial issues which emerged during the offer period. Cakra advised that these issues could be resolved in a timely manner, it was actively taking steps to secure a resolution and that, following resolution, Cakra intended to make a fresh bid,? it said.
To date, however, Cakra has not provided any further firm guidance as to timing for resolution of its commercial issues or any fresh bid, it added.
The company said it is engaged in active discussions of a confidential and incomplete nature in relation to two potential alternative transactions.
The first is a potential merger with an established ASX listed entity. The entity has an experienced board and management and it has conducted technical due diligence investigations of Cokal including site visits and advised Cokal that its diligence enquiries have substantially been completed.
The entity has advised Cokal that there is a key bid pre-condition (which is not within Cokal's control) and that subject to satisfaction of that condition, it is willing to quickly progress the proposal to finality.
?It has been indicated to Cokal that this could occur as early as within 4 weeks,? Cokal said.
Editing by Reiner Simanjuntak