https://www.miningweekly.com

Clock ticking for Moly to match offer for Gulf

2nd November 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – ASX-listed Moly Mines has five days in which to match a takeover offer from fellow-listed Metro Mining for Gulf Alumina, after the latter determined Metro’s offer to be a superior proposal.

Moly Mines in September launched a combination of A$0.46 in cash and 1.4 options for each Gulf share held, with the company revealing plans to progress Gulf’s Skardon River project, in Queensland, into production as “soon as possible”.

Gulf directors have backed Moly’s offer.

However, Metro Mining, which holds a 39% stake in Gulf, this week launched a competing bid for the takeover target, offering Gulf shareholders a choice of 60c in cash a share, or a cash and shares alternative of 50c in cash and one metro share for each Gulf share held.

Based on Metro’s closing price of 11c a share on October 24, the cash and share alternative was valued at 61c a Gulf share.

Metro said on Wednesday that its offer provided a logical opportunity to unlock over A$200-million in synergies from combining its own and Gulf’s complementary projects, with the combination also creating a leading independent Cape York-focused Australian bauxite company.

Metro’s offer is subject only to its interest in Gulf exceeding 51% during the offer period.

Gulf directors have advised Moly Mines that the Metro offer is considered superior, and Moly Mines has five business days to match Metro’s offer, before the Gulf directors withdraw their recommendation that shareholders accept the Moly offer.

Moly said it is currently considering its position, and that it will respond within the required timeframe.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.115 0.148s - 88pq - 2rq
Subscribe Now