Rajawali proposes takeover bid of Indo Mines

By Romel S. Gurky

ASX-listed Indo Mines Ltd said that its majority shareholder Indonesia?s PT Rajawali Corpora through wholly-owned subsidiary PT Surya Langgeng Utama announced early Friday its intention to acquire the entire remaining shares in Indo Mines which it does not already own.

Indo Mines said in a statement the bidder has indicated that it intends to make a conditional cash offer of $0.02 per share for all of the shares in the company that Rajawali or its associates does not already own. Rajawali and its associates currently hold 57.12 percent of the issued share capital of the company.

Indo Mines said its board has formed a sub-committee comprising Peter Chambers (Non-Executive Chairman) and Darryl Harris (Non-Executive Director) (the Independent Board Committee) to consider the takeover offer and the bidder?s statement (once it is received) and provide a recommendation to Indo Mines shareholders.

Indo Mines notes that the takeover offer is not yet open for acceptances and Indo Mines shareholders are not required to take any action at this time.

The firm said it is also in the process of appointing an independent expert to provide an opinion on the Takeover Offer as required under the Corporations Act 2001 (Cth). Indo Mines shareholders will be sent a target's statement in response to the bidder's statement in due course, which will include a copy of the independent expert's report and recommendation of the Independent Board Committee in relation to the takeover offer. In the meantime, the Independent Board Committee recommends that shareholders take no action in relation to the takeover offer.

Indo Mines said early November it has reached loan agreements totaling US$1.90 million with its majority shareholder, Rajawali Corpora, as it progresses discussions with a potential strategic partner in developing a smelter facility at the company?s Kulon Progo project in Kabupaten Kulon Progo, Yogyakarta.

Editing by Reiner Simanjuntak