Finders Resources (ASX:FND) has received a proposed off-market takeover offer priced at $0.23 per share and is currently formulating advice regarding the offer for its shareholders.
An independent sub-committee of the company’s board currently recommends shareholders to take no action until it can come to a formal recommendation, which is pending.
That being said, commentary provided by multiple brokers in the market agrees that the $0.23 bid is too low and considered opportunistic.
This is further supported by trading in the stock at prices above the bid price since the release of the Bidder’s Statement on 24 October 2017.
Furthermore, Finders pointed out that in the Bidder’s Statement:
- The offer price analysis disregarded more recent pricing metrics which presents the bid at a discount rather than a premium;
- Copper recoveries at Lerokis were potentially understated; and
- The suggestion that the divestment of Finders’ ownership of mining licences in the project may apply from the commencement of the demonstration plant in December 2008 is without merit.
The offer is subject to Eastern Field obtaining >50% of Finders’ shares, FIRB approval and other customary conditions.
Additionally, the offer period will not open until the Bidder's Statement has been dispatched by Eastern Field to Finders.
Once the offer period opens, it must remain open for at least one month.
Finders owns and operates the 74.1% of the Wetar Copper Project located in Indonesia.
Recent drilling success at the Lerokis deposit is currently being incorporated into a new Mineral Resource and Ore Reserve estimate to be released during the current December quarter.