The directors of Copper Strike have described a $14.3 million off-market cash takeover bid by Kagara as highly opportunistic.
The directors of Copper Strike have described a $14.3 million off-market cash takeover bid by Kagara as highly opportunistic.
Kagara announced the takeover bid for all of the Queensland company's shares yesterday.
In a statement to the Australian Securities Exchange today, Copper Strike said that the company's Einasleigh is an excellent project and the 11 cent per share takeover offer is opportunistic.
"The Kagara announcement recognises that it has unique value it can extract from the Einasleigh project," the statement said.
Copper Strike has recommended that the shareholders take no action at this stage.
"Once the offer is received by shareholders in due course the directors will provide further advice to shareholders including their formal recommendation," the statement said.
The company has appointed Baker & McKenzie to act as its legal adviser in relation to the offer.
See company statement below:
The Directors of Copper Strike Ltd have been advised of Kagara Ltd's intention to make a conditional takeover offer for all the shares in the Company at a price of 11c each.
The preliminary view of the directors is that the quantum and timing of the offer is highly opportunistic. It places a price on the Company of only $14.3 million.
As disclosed in the Company's 2010 Annual Report, the Einasleigh project feasibility study confirming the economics of the project has been completed, and is continually updated for new information as it is available. The Company's directors consider that this project has excellent potential.
The Kagara announcement recognizes that it has unique value it can extract from the Einasleigh project. The Company directors consider that Kagara should not obtain control of the Company without paying an appropriate price.
The directors recommend that shareholders take NO ACTION at this time. Once the offer is received by shareholders in due course (expected date of lodgement unknown), the directors will provide further advice to shareholders including their formal recommendation.
The Company has appointed Baker & McKenzie to act as its legal adviser in relation to the offer.
