But Cokal directors are unable to form a final view at this stage as to whether the Cakra share consideration represents fair value.

Cakra, which is listed on the Indonesian stock exchange, is offering a choice of $0.16 per Cokal Australian Securities Exchange-listed share or 10.327 Cakra Shares for every 1 Cokal share or a mix of cash and shares.

The offer is subject to Indonesian regulatory approval and to Cakra raising approximately $US113 million by way of a rights issue.

“Directors will have more information when the Cakra Rights Issue has been finally approved, priced and completed,” Cokal said.

“The directors recommend that Cokal shareholders take no further action until Cakra’s Rights Issue has been finally approved, priced and completed and your directors can provide further guidance as to the value of the share consideration.

“An independent expert, BDO Corporate Finance, has also reviewed the Cakra Offer and concluded that the offer is fair and reasonable to Cokal shareholders because there is cash consideration available which the independent expert considers fair and reasonable.”