Two companies have finalized the terms of an Aus$73.8 million cash offer for UK-based nickel producer ENK. DMCI Holdings and D&A Income already own about 11.6% of ENK, and the cash offer will represent a further 33.9% of the company, taking their total share to 45.5%.
DMCI is a holding company listed on the Philippine Stock Exchange, with business interests in construction services, coal and ore exploration, mining and development, power generation, water and other infrastructure development. It has a proven track record of investing in mining and other highly-regulated sectors in the Philippines, which president Isidro Consuji says gives knowledge and experience in managing country, regulatory, permitting and environmental risks across these sectors.
“We are very pleased to have reached agreement with D&A and the independent directors of ENK in relation to the offer which we believe to be in the best interests of the company, its employees, customers and shareholders,” he says. D&A is an investment company whose principal beneficiary is Graham Edwards, the chief executive of one of the UK’s largest property companies Telereal Trillium.
ENK produced the first nickel at its pilot plant on Luzon Island in northern Philippines late last year. The company has two deposits on Luzon, with a combined JORC estimate of 840,000 tonnes. It had hoped to use its low cost heap leach process to extract nickel laterites at both the Acoje and Zambales chromite deposits.