PERTH (miningweekly.com) – ASX-listed takeover target Cokal has started detailed discussions with Indonesia’s PT Cakra Mineral (CKRA) in the hopes of finalising the takeover deal.
CKRA last month launched a takeover offer for Cokal, offering shareholders the option of either 15c in cash for each share held, valuing the company at A$70-million, or alternatively, CKRA would settle the transaction in its own shares, at an implied consideration of 19c a share.
Cokal said on Thursday that discussions with CKRA have been progressing, but added that the negotiations had highlighted the need to jointly manage the process on both the Australian and Indonesian stock exchanges, and under two company regulatory regimes.
“We believe that it is the first such transaction of this type between the two countries, there is no precedent. An understanding of these processes has been extremely important before reaching an agreement on a bid implementation agreement,” Cokal added.
As a result, the company has yet to form an opinion on the proposed takeover.
Cokal on Thursday advised shareholders to refrain from taking any action regarding the takeover offer.