Xstrata offers A$426m for Indophil Resources
17-MAY-2008 Intellasia | Money
May 17, 2008 - 7:00:00 AM
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London-listed mining major Xstrata Plc. said on Thursday's its copper unit will make an all-cash offer of A$1.00 a share for Indophil Resources NL, valuing the Australian miner at A$426 million (US$398 million).
The offer represents a 28% premium to Wednesday's closing price of Indophil shares of A$0.78.
Xstrata said the offer is aimed at increasing its interest in the Tampakan copper/gold project in southern Philippines.
Indophil owns 34.23% of the Tampakan project, and has arrangements in place to lift that stake to 37.5%.
The remaining 62.5% is held by Xstrata Copper, with the combined interests being managed through Philippine-based Sagittarius Mines Inc.
Xstrata said Indophil's largest shareholder, Australian-listed Lion Selection Ltd, has agreed to accept the offer for its 17.76% stake, taking Xstrata's holding in Indophil to 19.9%.
The Tampakan deposit is the largest undeveloped copper/gold deposit in Southeast Asia. It contains 12.8 million tonnes of copper metal and 15.2 million ounces of gold.
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