ASX-listed Cokal Limited, which has Indonesian coal properties, has released its target’s statement in response to the off market takeover bid by Indonesian company PT Cakra Mineral Tbk for all the shares in Cokal.
Cakra is offering Cokal shareholders a choice of:
- An all cash consideration at Aus$0.16 per Cokal share; or
- An all share consideration of 10.327 Cakra shares for every 1 Cokal share; or
- A mix of cash and share consideration - a combination of cash and Cakra shares, at the election of Cokal shareholders.
Cokal directors consider that the Cakra offer is fair and reasonable in the absence of a superior proposal or material adverse change, for the reasons set out in the target’s statement.
The target’s statement explains, however that Cokal directors are unable to form a final view at this stage as to whether the Cakra share consideration represents fair value. Directors will have more information when the Cakra Rights Issue has been finally approved, priced and completed.
Accordingly, the directors recommend that Cokal shareholders take no further action until Cakra’s Rights Issue is finally approved, priced and completed, and Cokal directors can provide further guidance as to the value of the share consideration.
An independent expert, BDO Corporate Finance (QLD) Ltd, has also reviewed the Cakra offer and concluded that it is fair and reasonable to Cokal shareholders because there is cash consideration available which the independent expert considers fair and reasonable.
The target’s statement has been served on Cakra and lodged with the Australian Securities and Investments Commission.
Cokal is an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence. Cokal has interests in five projects in Central Kalimantan and one project, which holds three exploration licences, in West Kalimantan, Indonesia considered prospective for metallurgical coal.