Cokal receives takeover proposal from Cakra Mineral
Tuesday, March 3 2015 - 01:44 AM WIB
ASX-listed metallurgical coal group, Cokal Limited, said it has received an unsolicited nonbinding and incomplete proposal in relation to a conditional off market takeover bid by IDX-listed mining firm PT Cakra Mineral Tbk for all of the ordinary shares of Cokal.
Cokal said in a statement Tuesday it has not formed any opinion on the proposal. Its present intention is to engage with Cakra to evaluate the proposal, it added.
Cakra proposes to acquire all of the issued securities of Cokal pursuant to a conditional off market takeover bid on the following terms:
(a) Cakra proposes to offer cash or Cakra shares for each Cokal share on issue
i. Cash Settlement: Based on Cokal equity value of A$70 million. Assuming approximately 471.5 million Cokal shares on issue, proposed cash offer price is A$0.15 per share.
ii. Share Settlement: Shares in Cakra equivalent to the value of Cokal shares. Value of Cakra shares to be agreed. Cokal equity value to be A$70 million plus 25 percent premium. Assuming approximately 471.5 million Cokal shares on issue, proposed scrip consideration implies offer price of A$0.19 per share.
(b) the bid will be subject to :
i. Minimum acceptance by holders of 90 percent of Cokal?s issued shares;
ii. Other terms: certain conditions which are customary for an off market bid for an ASX listed company
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