Archipelago approves GBP338 million Rajawali privatization proposal
On Friday, the board of directors of gold firm Archipelago Resources approved the proposal of majority investor PT Rajawali Corporation's takeover proposal. One of the largest conglomerates in Indonesia would be buying out Archipelago in a deal worth GBP338 million or USD541 million. PT Rajawali owns 53% of the Singapore-based firm.
Archipelago chief executive Colin Sutherland said in a statement, "The Offer is priced at a level that represents an opportunity for minority shareholders to realise their investment at an attractive cash premium to the prevailing market price." Shares of Aircgipelago would be bought at an 18% premium priced at 58 pence or GBP0.58 per share in cash.
Archipelago is a gold producer listed on the London bourse's AIM. Its website disclosed that its key asset is the Toka Tindung Gold Mine which is located in the North Sulawesi region in Indonesia. Archipego is currently pursuing other exploration prospects in the Philippines and Vietnam.