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Afarak shareholder clarifies position on takeover proposal to be tabled at EGM

Afarak has an attractive portfolio of speciality metals assets
Afarak shareholder clarifies position on takeover proposal to be tabled at EGM
Afarak's Mogale refining plant

LNS, a shareholder with more than 10% of chrome producer Afarak Group plc (LON:AFRK), has clarified its position ahead of Afarak’s upcoming extraordinary meeting.

LNS has argued for some time that because of liquidity constraints, particularly in the local Helsinki market, where Afarak is based, the company should offer to buy out its shareholders.

WATCH: Afarak Group Plc confident on outlook despite challenging second quarter

The precise parameters of the proposal have now been laid out.

LNS argues that Afarak should offer its shareholders €1.015 in cash for each share and that the offer is limited to 28.404mln shares, subject to any increase authorised by the board of directors.

The current price is €0.88.

Hitherto, the Afarak board have not been in favour of such proposals, preferring to concentrate on delivering cash flow from the company’s mining and processing operations in Turkey, South Africa and Germany.


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