Cokal, whose shares were trading at 4.2c before the offer, said it had received an unsolicited non-binding and incomplete proposal in relation to a conditional off market takeover bid by PT Cakra Mineral Tbk (CKRA) for all of the ordinary shares of Cokal.

CKRA proposes to offer cash or CKRA shares for each Cokal share on issue.

With the cash settlement option, the proposed cash offer price is $0.15c per share, assuming about 471.5 million Cokal shares on issue.

The share settlement option would consist of CKRA shares – which are listed on the Indonesia Stock Exchange – to the Cokal equity value of $70 million plus 25% premium. This implies an offer price of $0.19 per share.

“Cokal has not formed any opinion on the proposal,” Cokal said in a statement.

“Its present intention is to engage with CKRA to evaluate the proposal.

“The outcome of the proposal is speculative. Shareholders should be aware that there is no certainty that any agreement will be reached or that any transaction will eventuate from the current or any future discussions.”

Cokal’s BBM coal project in Kalimantan has a total coal resource estimate of 266.6 million tonnes, comprised of 19.5Mt measured, 23.1Mt indicated and 224Mt inferred resources reported in accordance with the 2012 JORC Code.

The product split for the total BBM coal resource is estimated to be 90% coking coal and 10% PCI.

The takeover offer would require a minimum acceptance by holders of 90% of Cokal’s issued shares.