Finders Resources’ second-largest largest shareholder, Taurus Funds Management, has rejected a 23-cents-a-share bid for the copper miner by Indonesian group Eastern Field Developments.
In a statement to the ASX today, Finders said Taurus Funds Management, which holds an 11.3 per cent stake in the company, would not accept the offer. Earlier this week, Finders urged its shareholders to reject the takeover bid after independent expert Deloitte valued the copper miner's shares between 31 and 35 cents.
“Taurus has notified Finders that it does not intend to accept the offer at the offer price of 23 cents per Finders share in respect of the Finders shares that Taurus manages, on the basis that Taurus considers that the offer price does not reflect the fair value of Finders shares,” Finders said.
Eastern is the largest shareholder in Finders with a 19.8 per cent share of the company.
Perth-based Finders said the Indonesian group had gained only 1 per cent shareholder approval for the bid so far.
“Eastern Field had received acceptances in respect of less than 1 percent of Finders shares by Tuesday,” Finders said
Eastern director David Fowler said earlier this week that the independent expert valuation was too high.
"Needless to say, we wholeheartedly disagree with Deloitte's valuation because, with all due respect to Deloitte, the valuation reflects a theoretical world of perfection,” he said
“And as Finders has demonstrated since Wetar produced its first copper cathode in 2014, and underlined with its three production downgrades in the past five weeks alone, the operating reality is far different to the value creation Finders once promised its shareholders.
"In fact, since Wetar's development, Finders shares have not come close to trading in the 31 to 35 cents fair value range suggested by the independent expert because investors simply do not believe Finders is worth that much.”
Finders’ share price continues to trade at 23 cents.
By Tayler Neale
