Sihayo Gold (ASX:SIH) has again advised shareholders to take no action on the all-cash takeover offer by shareholder Provident Minerals while it waits for the independent expert’s report.
The Indonesia-focused explorer was required to release its target’s statement by 27 June but says the independent expert’s report required for it to issue its target’s statement has been delayed “by factors beyond the control of the company”.
“The independent expert’s report will assess whether the offer is fair and reasonable to Sihayo shareholders,” Sihayo says.
“The release of a target’s statement without the independent expert’s report, would result in Sihayo shareholders receiving insufficient information to enable each shareholder to make an informed decision whether to accept the offer.”
Sihayo applied to the Australian Securities and Investments Commission for an extension and now has until 4 July to issue the target’s statement.
Provident Minerals, which has been an investor in Sihayo since 2013, is offering $0.00225 per share cash via the unsolicited bid.
Based on Sihayo’s 12.2 billion shares on issue, the offer price values the company at roughly $27.5 million.
Prior to the offer Sihayo had a market capitalisation of around $12.2 million, and that has doubled since news of the offer emerged in late April.
Provident has so far increased its stake to 42.47% in partnership with Eastern Field Developments and Gavin Caudle, who is a director of Provident and also on the board of Sihayo.
The trio vended their respective stakes into special purpose vehicle, Provident Aurum.
The suitor released its bidder’s statement on 12 June urging shareholders to accept the offer, which is the “best and final and will not be increased”.
Due to the delay in Sihayo issuing its target’s statement, Provident has extended its offer to 19 July.
Sihayo owns 75% of the Sihayo Gold Project, which hosts 24 million tonnes @ 2 grams per tonne for 1.5 million contained ounces.
Provident Aurum Director Hari Gurung said in late April that despite multiple capital raisings over many years, Sihayo has still not been able to take the Sihayo Gold Project through to development.
Write to Angela East at Mining.com.au
Images: Sihayo Gold
