Finders tells shareholders to ‘take the deal’ after Eastern Field gains control
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Finders Resources is today urging shareholders to “quickly consider accepting” Eastern Field Developments’ takeover offer after the hostile suitor managed to grab more than 60 per cent of the junior copper producer.
“Although the independent directors are disappointed and believe the offer price does not reflect fair value for Finders shareholders, the fact that Eastern Field now has a controlling interest in the company means shareholders should seriously consider accepting the offer,” managing director Barry Cahill told investors.
“There are significant risks associated with being a minority shareholder and we would urge all Finders shareholders to carefully consider those risks now, in order to leave sufficient time to accept the offer if you wish to do so.”
Finders (ASX:FND) shares slipped 1.3 per cent to 22.7c just after market open on Tuesday.
Eastern Field — which comprises Provident Minerals, Indonesian investment firm Saratoga and Indonesian copper-gold miner Merdeka — tabled its 23c off-market offer for Finders in October last year.
It took some months for the takeover bid to gain traction, but the acceptances started ramping up in March, with it taking just over a week for Eastern Field to raise its stake from 33.8 per cent to 60.2 per cent.
Finders’ directors are now also planning to accept the offer, which closes on Friday March 30.