Finders shareholders to make $177m takeover play

An Indonesian consortium has announced its intention to make an off-market takeover bid for copper miner Finders Resources, with the all-cash deal valuing the target at about $177 million.

Under the offer proposed by Eastern Field Development, shareholders in Perth-based Finders, which owns majority stakes in the Wetar copper operation and the Ojolali gold-silver project (both in Indonesia), would receive 23 cents in cash for every share they own in the business.

Eastern Field is made up of Indonesian companies Provident Minerals and Saratoga, which are also existing stakeholders in Finders with a combined 19.8 per cent stake, and copper-gold producer Merdeka.

“The Finders directors will consider the terms of the proposed offer, and the content of the bidder’s statement when received, and will advise Finders shareholders of their recommendation in due course,” the target said in a statement.

“In the meantime, Finders shareholders are advised to take no action in relation to the proposed offer and any correspondence received in relation to it.”

Eastern Field director David Fowler said that, if the offer was unsuccessful, Provident and Saratoga would review their interests in Finders and would consider divesting their shares and withdrawing interest in the business.

“Provident and Saratoga have determined their existing interest in Finders is too small in the context of their collective portfolios,” he said.

“This offer enables them to materially increase their shareholding in Finders.

“The offer also provides Finders shareholders with the opportunity to lock in certain all-cash value while removing the Indonesian operational and regulatory risks associated with Finders’ Wetar project.”

Argonaut is acting as financial adviser to the consortium, while Iffla Wade is acting as legal adviser.

Shares in Finders were 2.1 per cent higher to 23.5 cents each at midday.