Far East Gold independent board commitee rejects Xingye takeover offer
ASX-listed Far East Gold's independent board committee has recommended that shareholders reject the unsolicited off-market takeover offer having been made by Hong Kong-based Xingye Gold.
Xingye's A$0.13 apiece buyout offer is, according to independent expert Lonergan Edwards & Associates, neither fair nor reasonable.
The firm estimates Far East Gold's share value closer to A$0.324 and A$0.444 apiece, with a mid-point of A$0.385.
Notably, Lonergan's assessment was made prior to a forthcoming scoping study on the Idenburg project, in Indonesia.
Xingye's offer price is ultimately between 60% and 71% lower below Lonergan's assessed value.
Far East Gold's independent directors also intend to reject the offer, with the independent directors holding 11% of the company's share capital at the moment.
Other major shareholders representing 12.4% of Far East Gold's share capital also intend to reject the offer.
The Idenburg project has a mineral reserve estimate of 780 000 oz contained gold, with Far East Gold holding 51% of the project's ownership. The company also has development projects in Australia.
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