MARKETS

Cokal shares likely to be suspended until January

TAKEOVER target Cokal is not in a position to make the anticipated announcement about PT Cakra Mineral Tbk’s intention to make a further takeover offer to acquire all of the shares of the company and has requested Australian Securities Exchange to keep its shares suspended.

Lou Caruana
Cokal shares likely to be suspended until January

Although Cakra’s current offer closed on 15 November 2015, there are continuing and active discussions between the Cokal and Cakra of a confidential and incomplete nature in relation to Cakra's intention and capacity to make a new takeover offer, Cokal said.

“Accordingly, on behalf of the company we advise a continuation of the suspension of the company’s securities from quotation from the commencement of trading on Monday 30 November 2015 until the earlier of the commencement of trading on Monday 11 January 2016, or an announcement is made,” it said in a note to the ASX.

Directors in Kalimantan coal mine developer Cokal consider a $A70 million takeover offer by Indonesian group Cakra to be fair and reasonable in the absence of a superior proposal or material adverse change, according to its target statement.

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.

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