Xstrata (LSE: XTA) announced that its wholly owned subsidiary, Xstrata Copper, had acquired a 17.83% block of stock in Indophil Resources (ASX: IRN) from Lion Selection at a price of A$1.17 per share, or A$82 million.
Xstrata previously made an offer for Indophil Resources at A$1.28 per share, but the offer expired on the 29th August after Xstrata refused to match a competing offer by the Stanhill Consortium, which was recommended by the board of Indophil.
The transaction took Xstrata’s interest in Indophil to 19.99%, and Xstrata stated that it would not make any further offer for outstanding shares in Indophil Resources.
Xstrata Copper Chief Executive, Charlie Sartain, said:
“We are pleased to have acquired this strategic share in our minority partner in the Tampakan project from its largest shareholder. Xstrata's position as a significant shareholder in Indophil provides us with greater influence over the future ownership of our partner in the Tampakan project.”
Indophil's flagship asset is a 34.23% interest, with a right to acquire an additional 3.27%, in the Tampakan copper project in the southern Philippines. Xstrata Copper holds 62.5% in the project.