Indonesian group Rajawali, which already owns almost 53% of the miner, has offered 58p per share for the outstanding shares, a price that has been recommended by Archipelago’s independent directors.
Rajawali believes it would be better for the company if Archipelago's operational assets were under direct Indonesian ownership, which would give them exposure to regional investors who were familiar with Archipelago and Rajawali's Indonesian business.
Rawajali already has acceptances from 77.8% of shareholders including its own stake.
The offer also comes ahead of a change to the takeover code that would have meant Archipelago being covered from next month. The 58p offer price is an 18% premium to the close yesterday.
Colin Sutherland, Archipelago’s chief executive, said: “The offer is priced at a level that represents an opportunity for minority shareholders to realise their investment at an attractive cash premium to the prevailing market price, in view of the strategic move by Rajawali to restructure Archipelago into an Indonesian listed entity."