Sakari Resources - Voluntary Conditional Cash Offer

Sakari today announced that PTT Mining Limited wishes to make a voluntary conditional cash offer at $1.90 per share. I see this as a very attractive offer to those who bought Sakari Resources at price below S$1.50 recently. Below are the content extracted from the news posted at SGX:

Singapore, 27 Aug 2012. PTT Mining Limited (“PTT Mining”), a wholly owned subsidiary of PTT
International Company Limited (“PTT International”), today announced a voluntary conditional cash offer (the “Offer”) for Sakari Resources Limited (“Sakari Resources”). Listed on the SGX-ST since 2006 (SGX ticker: AJ1, Bloomberg ticker: SAR.SP), Sakari Resources is primarily engaged in the mining and marketing of thermal coal from the Sebuku coal operation located on Sebuku Island,
South Kalimantan, Indonesia and the Jembayan coal operation located in East Kalimantan, Indonesia. Through the Offer, PTT Mining wishes to increase its shareholding in Sakari Resources to a majority over 50 percent.

Under the terms of the Offer, PTT Mining is making an offer for all the shares in Sakari Resources that it does not already own at a price of S$1.90 per share, implying a market capitalisation of S$2.2 billion for Sakari Resources.

The Offer price of S$1.90 per share represents a premium of:
– 27.5% to the closing price on 24 August 2012
– 34.9% to the 1 month volume weighted average price2 (“VWAP”)
– 39.1% to the 3 month VWAP2
– 23.1% to the 6 month VWAP2

The Offer Price represents an attractive premium over the market prices of the Sakari Resources’
shares. Through the Offer, shareholders may realise their investment in Sakari Resources at the
attractive premium without incurring brokerage and other trading costs.

Coal represents an important long-term diversification strategy and growth opportunity for PTT Public Company Limited (“PTT”), which already controls, through PTT Asia Pacific Mining Pty Ltd
(“PTTAPM”), approximately 45.27% of Sakari Resources. PTT Mining’s offer is in line with the PTT
International’s strategy to increase its presence in the minerals and energy sector and further diversify its resource base and income streams. If completed, the offer will strengthen PTT International’s platform for growth in the Indonesian coal sector.