Indonesian group Eastern Field has taken control of Finders Resources, five months after announcing its takeover deal, which values the copper miner at about $177 million.
Indonesian group Eastern Field has taken control of Finders Resources, five months after announcing its takeover bid, which values the copper miner at about $177 million.
Eastern Field has increased its stake to more than 60 per cent, with the independent directors now urging shareholders to accept the offer to avoid being left as a minority shareholder.
The group, which made its 23-cents-per-share offer in October, has been highly critical of the current management and raised a number of concerns regarding production at Finders' Wetar project in Indonesia.
It recently declared the current offer as its final price, triggering a flurry of acceptances.
Finders' independent directors had, until today, rejected Eastern's offer, with a report by independent expert Deloitte valuing the company’s shares between 31 and 35 cents.
“Although the independent directors are disappointed and believe the offer price does not reflect fair value for Finders shareholders, the fact that Eastern Field now has a controlling interest in the company means shareholders should seriously consider accepting the offer before it closes,” managing director Barry Cahill said.
“There are significant risks associated with being a minority shareholder and we would urge all Finders shareholders to carefully consider those risks now, in order to leave sufficient time to accept the offer if you wish to do so.”
Eastern Field Director David Fowler said the group was delighted with gaining majority control and would now go about implementing a number of objectives.
“Eastern Field set about this journey six months ago because we had realised that we needed to increase our shareholding in Finders to affect change and to realise the value of our investment," he said.
Mr Fowler said the group's goals included maximising long-term production and cashflow, extending the mine life at Wetar, improving the company's financial position and appointing a new board.
“Eastern Field’s shareholders intend to keep the company listed and are determined to maximise the long-term share price for all shareholders," he said
“Now that we are the majority owner of Finders shares and once our offer period has closed, we look forward to sitting down with Finders’ management to map out the way forward to make sure Finders delivers on the Wetar mine’s potential.”
The offer closes on March 30.
The Takeovers Panel recently dismissed an application from Eastern Field, with the panel determining that appropriate action has been taken by Finders in relation to the Wetar project.
Shares in Finders have hovered around the 23 cent mark since the offer was made in October.