Indophil says Chinese takeover 'alive'
Monday May 31, 2010, 6:30 pm
au.biz.yahoo.com
Indophil Resources NL says its protracted $545 million takeover by China's largest gold miner is on track for completion in coming weeks.
Indophil, a Philippines-focused mineral explorer, advised its investors in December to accept a $1.28 cash per share bid by Zijin Mining Group, its largest shareholder with a stake of about 31 per cent.
Shares in Indophil closed 2.5 cents, or 2.22 per cent, higher at $1.15.
Indophil chairman Brian Phillips told the company's annual general meeting on Monday that the transaction had not yet been completed, but was "very much alive".
The offer was given the nod by Australia's Foreign Investment Review Board in January, but still needs approval from Chinese authorities.
The proposal from Zijin, which is also China's third largest copper producer, is scheduled to close on July 9.
It was previously slated for completion on March 19.
"The bid process is taking longer than originally anticipated, largely due to the extended process required in obtaining the necessary approvals from the Chinese regulatory authorities," Mr Phillips said.
"We are mindful and respectful of the processes within China required to deliver a successful outcome."
Mr Phillips said Chinese officials had earlier this month been taken on a site visit to Indophil's only major asset, its 34 per cent held Tampakan copper and gold project in The Philippines.
"Indophil is optimistic that the visit will lead to Zijin obtaining the necessary approvals from the Chinese regulatory authorities," he said.
"It is clear that Zijin remains committed to successfully completing the transaction.
"That positive outlook remains.
"Your directors continue to recommend that Indophil shareholders accept the Zijin offer, in the absence of a superior proposal."
Indophil's joint venture partner at Tampakan, Swiss mining giant Xstrata Copper, failed to take over the company in 2008.
Xstrata in October last year blocked Indophil's then-proposed sale of its stake in Tampakan to Alsons Corporation, a Philippines group backed by Hong Kong merchant bank Crosby Capital.
Xstrata had objected to a lack of clarity over the terms of the Alsons deal, but gave Zijin's offer a boost in December when it agreed to accept the bid in respect of its stake in Indophil. |
