The explorer’s two independent directors have recommended shareholders accept the offer.
The four non-independent directors of Bowen declined to make a recommendation “given their association with Bhushan”
Bowen cited an independent report, undertaken by WHK Horwath Corporate Finance, which valued Bowen’s shares at between 3.53c and 5.51c and concluded that the Bhushan offer was both fair and reasonable.
This value is between about one-fifth or almost one-third of the current trading price.
Bhushan holds about 22.23% or 18.16 million shares of Bowen Energy, which is estimated to have about 81.68 million shares on issue.
In September last year, the Indian steelmaker agreed to purchase 1.75 million shares of the company at 32c per share.
Various press reports indicate some Bowen shareholders are not satisfied with the takeover offer.
An Australian Securities Exchange spokesperson has told ILN the bourse referred shareholder complaints about Bowen to the Australian Securities and Investments Commission due to matters relating to corporations law.
“Where we have cause, we refer potential serious breaches of our rules or the law to ASIC,” the spokesperson said.
ASIC has declined to make a comment on whether it will investigate the company due to legal reasons.
Bowen has not yet declared a maiden JORC resource for any of its coal projects.
But the explorer does hold some Queensland permits adjacent to areas held by key coal companies, including BHP Billiton, Anglo Coal and Macarthur Coal.
Bowen also made an announcement on Friday in response to a shareholder enquiry relating to a Reuters report in March.
The report suggested that Bhushan’s chief financial officer, Nittin Johari, who is also a Bowen director, viewed some of Bowen’s acreage as holding 1 billion tonnes of thermal coal and coking coal.
Bowen said Bhushan denied the comments were made as quoted in the news report.
Bowen wholly owns coal permits EPC 1084 and EPC 1085 and has a 40% stake in EPC 930.
The company has a full stake in permit applications EPCA 1197, EPCA 1083 and EPCA 1259.
Bowen also has minor stakes of 10-15% in four other coal permits in Queensland.
The takeover offer period starts July 27 and ends August 26, with UBS Securities appointed as the broker.
Payment will be made on a standard T + 3 basis, where the settlement date occurs three days after the trade date.
Bowen shares closed down 1c to 14c on Friday.
