The Independent Board Committee of Far East Gold (FEG) has issued a formal recommendation to shareholders to reject the ongoing takeover offer from Xingye Gold. Following a review of the latest supplementary bidder’s statements, the committee reasserted its position that the proposal significantly undervalues the company. An independent expert report from Lonergan Edwards & Associates has reconfirmed that the current offer of A$0.13 per share, and the conditional price of A$0.15, are both neither fair nor reasonable.

The independent expert maintained its valuation of the company between A$0.324 and A$0.444 per share, with a mid-point of A$0.385. The board argues that the bidder’s proposed price represents a substantial discount to this assessed fair value, noting that the conditional offer only triggers if the bidder secures more than 50% interest by July 21.

"The Independent Board Committee unanimously recommends that shareholders REJECT the Offer and TAKE NO ACTION. The view of the Independent Board Committee remains that both the Offer and Conditional Offer are opportunistic and materially undervalue FEG."

— Independent Board Committee, Far East Gold Ltd

Management highlighted that the bid arrives at a critical juncture for the company’s flagship Idenburg gold project. The board views the timing as tactical, aiming to capture ownership ahead of near-term value catalysts. Shareholders have been urged to avoid the offer to maintain their exposure to the project’s growth as development work progresses. Specifically, the completion of the Idenburg Scoping Study is expected in late July 2026.

The takeover offer is currently scheduled to close on 29 July 2026. Until that time, the board continues to advise shareholders to take no action regarding the proposal, citing the long-term potential of the company's assets and the discrepancy between the bid price and independent valuation assessments.

Read the full announcement: IER Reconfirms Xingye Offer is Neither Fair Nor Reasonable