JOHANNESBURG (miningweekly.com) – Takeover target Finders Resources said on Thursday that Eastern Field Developments has not yet received a single acceptance of its A$0.23-a-share offer for the company, despite the bid having been open for 22 days.
“The overwhelming support from shareholders is an emphatic rejection of Eastern Field’s bid,” said Finders chairperson Gary Comb, adding that the company believed the offer did not reflect the fair value of Finders, which owns the Wetar copper mine, in Indonesia.
On Wednesday, Eastern Field extended its offer period by 30 days to January 19 and waived the 50% minimum acceptance condition. The consortium of Indonesian companies also criticised Finders' target statement and accused the company of misleading shareholders about production prospects at the Wetar operation.
Comb said that Eastern Field’s decision to waive the minimum acceptance condition illustrated the “opportunistic nature” of the offer. “Eastern Fields is attempting to acquire any Finders shares that it can at the inadequate offer price.”
He again urged shareholders not to accept the offer, noting that they might be deprived of the opportunity to receive greater value for their shares from an alternative proposal or by selling on the ASX.
Finders shareholders who in aggregate represent 37.58% of Finders shares have come out in support of the company and have said that they do not intend to accept the offer.