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Highlights
- The Independent Board Committee unanimously recommended shareholders reject the unsolicited AUD 0.13 per share takeover offer from Xingye Gold and take no action.
- Independent expert valued FEG at AUD 0.324–0.444 per share.
- The expert concluded the offer is neither fair nor reasonable and represents a 60%–71% discount to the assessed company value.
- Independent Directors holding 11.07% of FEG shares and major shareholders representing 12.44% have indicated they do not intend to accept the offer.
- FEG’s upcoming catalysts include completion of Idenburg Scoping Study, following progress in expanding the project's gold resource to ~780,000 ounces and increasing its ownership to 51%.
Far East Gold Ltd (ASX:FEG) has advised shareholders to reject the unsolicited AUD 0.13 per share takeover offer from Xingye Gold (Hong Kong) Mining Company Limited after an independent valuation found the proposal falls well below the company's assessed value. The Independent Board Committee unanimously recommended shareholders reject and take no action, following an expert report that concluded the offer is neither fair nor reasonable.
Independent Expert Values Company Above Offer
Independent expert Lonergan Edwards & Associates (LEA) assessed the value of 100% of Far East Gold at AUD 0.324 to AUD 0.444 per share , with a midpoint valuation of AUD 0.385 per share on a controlling interest basis. The report concluded that Xingye's offer , places the bid at a 60% to 71% discount to the assessed value.
At the midpoint valuation, the offer represents a shortfall of AUD 0.255 per share compared with the expert's assessment. The valuation was completed before the upcoming Idenburg Scoping Study , meaning the study's findings were not incorporated into the assessment.
Reasons for Rejecting the Bid
The Independent Board Committee stated that the offer does not reflect the company's assessed value and noted that Far East Gold shares have traded above the AUD 0.13 offer price since 2 June 2026. According to the Independent Expert, this suggests investors anticipate an improved offer for the bid to gain acceptance.
The board also highlighted that multiple parties have entered confidentiality agreements with FEG and are progressing technical, commercial and site-based due diligence following the announcement of Xingye's offer. In addition, the committee pointed to the timing of the bid, which comes ahead of several planned milestones, including the completion of the Idenburg Scoping Study .
Furthermore, the company's Independent Directors , who collectively hold approximately 11.07% of FEG's shares, have confirmed they intend to reject Xingye's offer . In addition, major shareholders representing around 12.44% of the company's issued shares have indicated they do not currently intend to accept the takeover bid at the proposed price.
Recent Project Progress Highlighted
FEG also outlined developments at its Idenburg project over the past year, including expanding the JORC (2012) Mineral Resource to approximately 780,000 ounces of gold , increasing its ownership interest to 51% , commencing Indonesian feasibility study work , and advancing metallurgical and permitting activities. The company noted that the Scoping Study is nearing completion as the project advances toward development.
FEG shares were trading at AUD 0.16 per share, up over 3%, at the time of writing on 26 June 2026.
