MANILA, Philippines - DMCI Holdings Inc. and its UK-based partner D&A Income Ltd. have acquired a controlling 60.7-percent stake in ENK Plc., a mid-tier nickel producer with assets in Turkey, Philippines and Albania.
In a disclosure to the Philippine Stock Exchange, DMCI said its group now owns a total of 159.1 million shares in ENK (representing 60.7 percent) as of Sept. 4, following market purchases and the tender offer to the latter’s shareholders.
The group initially acquired a 20.6- percent stake or 53.98 million ENK shares for 19 pence each share, a premium of 38.2 percent to the closing price of 13.75 pence on July 26 when ENK first disclosed it had received an offer.
DMCI/D&A received valid acceptances with respect to 89.56 million ENK shares equivalent to 34.2 percent. DMCI has acquired an additional 15.55 million ENK shares (5.9 percent) through market purchases.
ENK has long been searching for a strategic partner to fund the development of its flagship project, Acoje mine, which covers an area of 3,765 hectares located in Luzon. The project had an indicated resource of some 40.9-million tons at 1.08 percent nickel and 0.05 percent cobalt, and an inferred resource of 29-million tons at 0.96 percent nickel and 0.06 percent cobalt.
DMCI is the holding company of the Consunji family with a market capitalization of around $3.6 billion. The company has interests in construction services, coal and ore exploration, mining and development, power generation, water and other infrastructure development.
It 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.
D&A, in turn, is an investment firm owned by a trust headed by the chief executive of one of the largest property companies in the UK.
ENK is currently finalizing a bankable feasibility study for the Acoje project, which is targeted for completion this quarter. Talks are proceeding to secure offtake 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 by local Philippine partner, Montemina Resources Corp.
Along with the Zambales resource, the Acoje project is estimated to have a mine life of 25 years.