Skafell pursues Tethyan Copper

Hong Kong company Skafell Pty Ltd has turned up the heat on its takeover target Tethyan Copper Company Ltd, accusing Tethyan of rushing into a highly damaging deal with a third company.
Skafell, a subsidiary of Hong Kong based investment banking and asset management group Crosby Capital, today lodged a fifth supplementary bidder's statement with the Australian Stock Exchange in support of their takeover action.
The latest supplementary bidder's statement includes an open letter from Skafell to Tethyan shareholders and comes on the back of Tethyan's recent joint venture agreement with Chilean copper company Antofagasta Minerals to explore copper and gold in Pakistan.
The $A182 million Tethyan-Antofagasta agreement is still subject to the approval of shareholders and regulators, and Tethyan's board has recommended its shareholders accept the proposal in preference to the Skafell takeover bid.
The Skafell letter states its case strongly on the Tethyan takeover bid, claiming amongst other things that 'Tethyan's approach to disclosure remains highly and damagingly selective'.
It also focuses on what it sees as dilution of value for Tethyan shareholders in the Antofagasta deal without any supporting guidance as to the incremental value it will create.

"Tethyan has apparently rushed into a highly dilutive and economically damaging deal that is far less appealing than the management team would have you believe," Skafell said.
Tethyan's principal assets are a 75 per cent interest in the Reko Diq copper and gold exploration licence in North West Pakistan.
Tethyan have committed to an extraordinary general meeting in February to vote on the Antofagasta joint venture.
Skafell have indicated they will communicate further with Tethyan shareholders prior to the meeting, when additional details on the transaction are provided by Tethyan management.