- Independent expert says Xingye offer not fair or reasonable
- Xingye’s offer price assessed to be well below value of FEG shares
- Independent directors intend to reject offer
- Major shareholders confirm they do not presently intend to accept offer
Far East Gold (ASX:FEG) has told shareholders to reject an unsolicited off-market takeover offer from Hong Kong firm Xingye Gold after an independent expert reported it was not fair or reasonable.
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Xingye’s offer price has been assessed to be at a discount of 60% to 71% below the assessed value of 100% of the shares in the company on a 100% controlling interest basis.
Analysis has valued 100% of the ordinary shares in Far East Gold at A$0.324 to A$0.444 per share, with a mid-point of A$0.385 — almost three times Xingye’s A$0.13 Offer.
The review has further strengthened the view of the company’s independent directors, who hold approximately 11.07% of the company’s shares, to reject the offer at the offer price.
At the same time, FEG’s major shareholders, representing approximately 12.44% of the company have confirmed they do not presently intend to accept the offer at the offer price.
Far East Gold announced in late May it had received a bidder’s statement related to the acquisition of all of the ordinary shares in FEG that Xingye did not already own for a cash consideration of $0.13 per share,
FEG’s indent directors have labeled the takeover bid as opportunistic, noting it was made immediately prior to a number of important 2026 value catalysts, including completion of a scoping study into the Idenburg project.
Over the past 12 months FEG has grown the Idenburg JORC mineral resource to approximately 780,000 ounces, increased its ownership to 51%, commenced Indonesian feasibility study workstreams, and delivered positive metallurgical and permitting outcomes.
Far East Gold is a copper/gold exploration company with six advanced projects in Australia and Indonesia.
FEG is steady at 15.0¢. Mkt cap $55.05M.
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