Perth — The share price of dual listed Intrepid spiked 38% in Sydney on Wednesday on news that it had agreed to sell a 5% shareholding in the company to Indonesian businessman Surya Paloh.
The media mogul is a prominent political and business figure in Indonesia, and has extensive interests in the hotel and property sectors, as well as in oil and gas operations.
“We are delighted to be associated with Paloh, whose extensive networks and vast experiences in navigating the waters of Indonesian business will greatly benefit the company, both in safeguarding its existing interests in Indonesia and expading within the local resources sector,” said TSX- and ASX-listed Intrepid CEO Brad Gordon.
“This association extends the company’s assimilation into Indonesia and follows the appointment of Adrianto Machribie to the board of Intrepid in November 2011, and the recent opening of a representative office in Jakarta.”
Under the terms of the transaction, Intrepid would issue more than 27.6-million shares for a nominal price, subject to approval being obtained from the TSX.
Intrepid would also issue Paloh with more than 25.6-million performance rights to ordinary shares, at no consideration, which would be vested upon the daily volume weighted average price of Intrepid shares equaling or exceeding A$1 for one full calendar month on the ASX, and C$1 for one full calendar month on the TSX.
The performance rights would lapse after one year should vesting not have occurred.
Intrepid has agreed to further issue an additional 25.6-million performance rights to ordinary shares, subject to requisite TSX approvals being obtained. The performance rights vest upon the daily volume weighted average price of Intrepid’s shares equaling or exceeding A$1.20 for one full calendar month on the ASX and C$1.20 for one full calendar month on the TSX.
Intrepid shares were trading at around 28c a share on the ASX on Wednesday.
Earlier this month, Intrepid’s share prices plummeted after its Indonesian joint venture (JV) partner suspended operations at the Tujuh Bukit project, kicking out Intrepid staff from the project area.
The move came after new shareholders collectively acquired 80% of the expanded issued capital of Intrepid’s JV partner Indo Multi Niaga.
The company, which has sole funded some $95-million on exploration activities at Tujuh Bukit, was attempting to establish discussions with both the new and original shareholders.
Intrepid hit a high of A$0.305 a share on the ASX on Wednesday before slipping to A$0.209 a share later in the day.