12/12/2017 - 10:55

Perth investors reject Finders takeover

12/12/2017 - 10:55

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Finders Resources has received the backing of some high-profile Perth investors in its opposition to a hostile takeover offer, with Euroz’s Tim Lyons, billionaire Ralph Sarich and Brettney Fogarty among a list of shareholders to have indicated they will not accept the 23-cents-a-share bid.

Perth investors reject Finders takeover
Finders is a copper producer with interests in Indonesia.

Finders Resources has received the backing of some high-profile Perth investors in its opposition to a hostile takeover offer, with Euroz’s Tim Lyons, billionaire Ralph Sarich and Brettney Fogarty among a list of shareholders to have indicated they will not accept the 23-cents-a-share bid.

The copper miner rejected the offer from Indonesian group Eastern Field Developments last week after independent expert Deloitte valued the company’s shares between 31 and 35 cents.

Finders released a statement to the ASX this morning saying that about a third of shareholders did not intend to accept the takeover offer.

Mr Lyons, an executive director at Euroz Securities, owns about 3 per cent of Finders’ shares through a number of entities, including Hillboi Nominees and his superannuation fund.

Mr Fogarty has a 2.4 per cent stake in the company with his investment firm 3rd Wave Capital, while Mr Sarich owns 0.73 per cent of Finders through Cape Bouvard Equities.

Euroz-run fund management companies Ozgrowth and Westoz, which hold 1.55 per cent and 0.76 per cent stakes respectively, also said they would reject the offer.

Finders announced last week that its second largest shareholder, Taurus Funds Management, which has an 11.3 per cent stake, would reject the bid.

It added today that Eastern, which owns 19.8 per cent of the miner’s shares, had received acceptances of less than 1 per cent as at Friday.

Eastern director David Fowler recently said his group had a number of conerns with Finders current operations.

“Finders has confirmed four production and cost downgrades for Wetar in the past three months," he said

“We have no confidence in any of Finders’ guidance and are concerned that another production downgrade may be looming."

Mr Fowler said Eastern would extend the acceptance deadline.

“We now intend to extend our takeover acceptance deadline by one month to January 19 and drop our 50.1 per cent acceptance condition," he said

“We urge Finders shareholders to seriously consider the risks of further production downgrades and operating risks in Indonesia versus the certainty of our 23 cents all-cash offer.”

Finders shares were trading at 23 cents at the close.

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