24th Mar 2006 07:00
Antofagasta PLC23 March 2006 ANTOFAGASTA PLC Antofagasta increases cash takeover offer for Tethyan LONDON: 23 March 2006 - Antofagasta PLC ("Antofagasta") announces that it hastoday reached agreement with Tethyan Copper Company Limited ("Tethyan") torevise the terms of its takeover offer for Tethyan ("the Offer") such that: • the offer price is increased to A$1.40 cash per Tethyan Share; and • all remaining conditions of the Offer have been waived by Antofagasta, other than conditions relating to Minimum Acceptance, Options, Prescribed Occurrences, Other Regulatory Approvals and Material Acquisitions, Disposals and Commitments. The Offer represents an increase of 17% over Antofagasta's original offer priceof A$1.20 per share and is 5 cents per share higher than Skafell Pty Ltd'shostile offer. Antofagasta has the full support of its proposed joint venture partner, BarrickGold, in relation to the Offer. The Board of Tethyan has unanimously recommended that shareholders should acceptthe Offer in the absence of a superior offer emerging and has indicated that theTethyan directors will be accepting the Offer for all of their holdings ofTethyan Shares they own or control on that basis. Marcelo Awad, CEO of Antofagasta Minerals S.A., stated, "Antofagasta's offer isthe highest offer for Tethyan in the market and is the only offer unanimouslyrecommended by the Board of Tethyan. It represents a very attractive price forTethyan shareholders and I would encourage all shareholders to accept the Offeras soon as possible." Antofagasta currently owns 14.85% of Tethyan's issued share capital.Antofagasta wishes to confirm that, under no circumstances will thisshareholding be tendered into Skafell's offer, whilst it remains subject to a90% acceptance condition. This means that Skafell's offer as it currentlystands is not capable of succeeding. Antofagasta also notes that under its agreement with BHP Billiton it may, at itsoption, purchase the claw-back right over certain Tethyan mineral interests atany time during the currency of its offer (following the satisfaction or waiverof its Other Regulatory Approvals condition). If Antofagasta purchases theclaw-back right it would have the right to acquire 70% of Tethyan's economicinterest in the Western Porphyries, which currently hosts the vast majority ofthe contained copper-gold resource at Reko Diq. Rothschild is advising Antofagasta in relation to this transaction. End Enquiries - SantiagoEnquiries - London Antofagasta Minerals S.A.Antofagasta PLC Alejandro RiveraTel: +44 20 7808 0988 Tel: +56 2 377 5145www.antofagasta.co.uk Email: [email protected] Desmond O'Conor Enquiries - AustraliaEmail: [email protected] N M Rothschild & Sons (Australia) Ltd (financial advisers)Bankside Consultants Tel: +61 2 9323 2000Tel: +44 20 7367 8873 Marshall BaillieuMob: +44 7885 356 639 Chris Forman Keith Irons Jackson Wells Morris (public relations advisers)Email: [email protected] Tel: +61 2 9904 4333 Benjamin Haslem Jakob Webster This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Antofagasta