Xstrata backs Indophil takeover bid
Sydney Morning Herald
Wednesday December 2, 2009
XSTRATA has given China's Zijin Mining a flying start to its $1.28-a-share takeover bid for Indophil, Xstrata's partner in the Tampakan copper/gold deposit in the Philippines.Zijin secured a pre-bid acceptance agreement with Xstrata covering 19.9 per cent of Indophil, a legacy of Xstrata's failed takeover bid for its Melbourne partner at the same price level last year. Zijin's bid has been recommended by Indophil's board.The price represents an 18 per cent premium to Indophil's last sale price and an 83 per cent premium to its six-month average.Indophil's chief executive, Richard Laufmann, slipped back into Melbourne yesterday from China where he has been working on the deal.It is expected the Bidder's Statement and the Target's Statement will be available before Christmas. Shares rose 11.5c, more than 10 per cent, on the news to finish at $1.20.The offer values Indophil at $545 million on a fully diluted basis, the mid-range of expectations from the formal sales process initiated by the company. A rebound in copper prices since mid-February saw Indophil shares surge from a year-low of 31c.