Photo by: Reuters
PERTH (miningweekly.com) – ASX-listed Indophil Resources, which is developing the $5.9-billion Tampakan copper and gold project in the Philippines, has received a takeover offer from its largest shareholder, Alons Prime Investments Corporation (APIC).
The Philippines shareholder, which currently has a 19.99% stake in Indophil, is offering shareholders 30c in cash a share, valuing the company at around A$361-million.
Indophil’s independent directors have unanimously recommended that shareholders accept the offer, stating that the offer price was a 43% premium to the company’s last closing price, and a 38% premium to the one-month volume weighted average price of Indophil shares, as well as a 52% premium on the three-month volume weighted average price.
“The proposal from APIC offers Indophil shareholders a significant premium and value certainty. A transaction with APIC enables Indophil shareholders to realise their investment in Indophil and avoid exposure to the development risks which would need to be overcome in order to bring the Tampakan project into production,” said Indophil chairperson Brian Phillips.
In August last year, Indophil announced a reboot of the Tampakan project, with the aim of securing government support on key bottleneck issues before proceeding to final valuation and possible development.
The revised work plan followed a project review, which investigated the issues and challenges facing the project, including the resolution of the South Cotabato openpit mining ban, the definition of the pathways to project approvals from all levels of government and the gaining of consent to resettle impacted communities.
At the start of the year, project partner Glencore said that it was considering divesting its majority interest in the Tampakan project, to conform to the Chinese government’s conditions for the merger between Glencore and Xstrata.
Glencore, which owns a 13% interest in Indophil, on Tuesday said that it intended to accept APIC’s offer for its shareholding in Indophil.
The APIC offer was subject to limited conditions, including Indophil shareholder approval, Australian Foreign Investment Review Board approval, and the recommendation of an independent expert.