PERTH (miningweekly.com) – The board of Indo Mines has advised shareholders not to take any action regarding a proposed off-market takeover bid from PT Surya Langgeng.
The Indonesian company, which is a wholly owned subsidiary of PT Rajawali Corpora, on Friday announced its intention to make an all-cash offer of 2c a share for all the shares in Indo Mines.
Rajawali, which already holds a 57.12% interest in Indo Mines, pointed out that there was limited trading in the ASX-listed company’s shares, meaning that the off-market takeover offer was a rare opportunity and potential liquidity event for Indo’s shareholders who wished to exit their investment.
The proposed offer would be subject to a number of conditions, including Rajawali acquiring a minimum 90% interest in Indo.
Indo Mines said that it was in the process of appointing an independent expert to provide an opinion on the proposed takeover offer, and would keep shareholders informed of further material developments.
Indo Mines holds a 70% interest in the Jogjakarta iron project, in Indonesia, which has a probable ore reserve of 163.5-million tonnes, grading 13.7% iron.