Australian coal development company, Cokal, has asked for its shares to remain suspended from the ASX as negotiations with a potential buyer continue. The company’s shares have been suspended since 4 November.
“The company’s securities have been previously suspended from quotation until 11 January or until an earlier announcement is made regarding clarification by PT Cakra Mineral Tbk of its intention to make a further takeover offer to acquire all the shares of the company,” said Cokal’s lawyers, Thomson Geer, in a letter to the ASX.
Jakarta-listed Cakra is a mineral investment company operating integrated mining business segments through its subsidiaries with businesses ranging from minerals exploration, mining, processing and marketing of minerals. It is majority owned by Redstone Resources, a Singapore-based company specializing in mining investments. Its initial offer for Cokal was announced last April and included the choice of receiving a share consideration of 10.327 Cakra shares per Cokal share, AUS0.16 per Cokal share or a combination of both.
However, despite Cakra’s offer closing on 15 November, the two companies remain in negotiations of a “confidential and incomplete nature” over Cakra’s intention and ability to make a new takeover offer.
“Further, the company is engaged in active discussions of a confidential and incomplete nature in relation to potential competing transactions if Cakra does not have the intention or capacity to make a new takeover offer for the company,” said Thomson Geer.
As a result, the company’s shares will remain suspended until “the earlier of the commencement of trading on Friday 15 January or an announcement is made.”
Cokal lists interested in four metallurgical coal projects in Central Kalimantan and one in West Kalimantan in Indonesia on its website, as well as a joint venture agreement to explore for coal in Tanzania and a co-operation agreement with EMEM, the Mozambique Government Mining Corp., to explore for metallurgical coal in Mozambique.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/13012016/cokal-extends-share-suspension-from-asx-2016-44/