Gulf terminates binding agreement
Thursday, March 2 2017 - 05:49 AM WIB
ASX-listed Gulf Manganese Corporation Limited said it has terminated a binding agreement with Marthen Amtiran to invest US$10 million for 10 percent equity in Indonesian subsidiary PT Gulf Mangan Grup, which also included a 12 month option to invest a further $10 million for an additional 10 percent equity.
As advised in the ASX announcement on February 1, 2017, Marthen submitted an alternative offer with substantially different terms to the initial offer for the investment in PT Gulf. ?The Board has considered this new offer and deemed it to be unacceptable, and has subsequently rejected the new offer,? Gulf said in a recent statement.
The timetable set by the company in relation to the completion of the binding agreement with Marthen has now passed. ?Although Marthen has told us that he is still interested in investing, the company has decided that the delay is too long for an Australian company to wait, particularly given the increase in the manganese price since the agreement was signed.? Gulf said. Thus, the company has terminated the agreement with Marthen and is reviewing its options to take legal action against Marthen. Marthen will be removed as President Commissioner of PT Gulf, the statement said.
Gulf is developing a smelting hub facility in Kupang, East Nusa Tenggara Province.
Editing by Reiner Simanjuntak