DMCI offers to acquire UK-based nickel miner

MANILA, Philippines - DMCI Holdings Inc., together with British fund D&A Income Ltd., has offered to acquire ENK Plc., a UK-based mid-tier nickel developer with resources and assets in Turkey, Philippines and Albania, for 49.8 million pounds ($78 million).

ENK is focused on developing its flagship project, Acoje mine, which covers an area of 3,765 hectares located in Zambales. The deposit has a combined inferred and indicated resource of 50.14 million tons grading 1.08 percent nickel and 0.05 percent cobalt.

DMCI offered to acquire all of the existing shares of ENK at an offer price of 19 pence per share, a premium of 38.2 percent to the closing price of 13.75 pence on July 26, the day before the approach was announced, and a premium of 67.5 percent to the average closing price over the three-month period to that date.

ENK shares are listed in both London and Australian stock exchanges.

ENK’s independent directors have unanimously recommended shareholders to accept the offer “in the absence of a superior proposal”.

 “The joint offerors believe that the offer provides ENK shareholders with an opportunity to crystallise value at a significant premium to the undisturbed share price as an alternative to the risks and significant funding requirements associated with the company’s current strategy,” DMCI said in a statement.

DMCI is the holding company of the Consunji family with a market capitalization of approximately $3.6 billion. It has interests in construction services, coal and ore exploration, mining and development, power generation, water and other infrastructure development.

DMCI has a successful track record of investing in mining and other highly-regulated sectors in the Philippines, which gives it deep knowledge and experience in managing country, regulatory, permitting and environmental risks inherent in these sectors.

ENK is currently finalizing a bankable feasibility study for the Acoje project, which is targeted for completion this quarter. It said talks are proceeding to secure off-take sales agreements for the mine’s nickel.

It also owns the the 540-hectare Zambales chromite deposit, situated five kilometers north of the Acoje project, The deposit is 40 percent owned by ENK, and 60 percent owned by local partner Montemina Resources Corp.