PERTH (miningweekly.com) – French suitor Eramet has increased its offer for ASX-listed Mineral Deposits (MDL) from A$1.46 a share to A$1.75 a share, increasing MDL’s valuation from A$291-million to A$322-million.
Eramet told MDL shareholders that the increased offer, which would close on July 13, would not be increased in the absence of a competing proposal.
The improved offer price represented a 59% premium to MDL’s one-month volume weighted average price and a 51% premium to the company’s closing price prior to the initial offer.
Eramet on Wednesday also said that it would declare the offer unconditional if the company reached a 50.01% shareholding in MDL. If the offer becomes unconditional, Eramet would pay MDL shareholders that accepted the offer their cash consideration within seven days of their acceptance or the offer becoming unconditional.
MDL and Eramet own the TiZir JV in a 50:50 partnership. The JV comprises two integrated producing assets – the Grande Cote mineral sands mine, in Senegal, and the TiZir Titanium and Iron ilmenite upgrading facility in Norway.
The French company has urged MDL shareholders to accept the increased offering, saying that it provided certainty of cash compared with the risk of remaining an MDL shareholder, including TiZir’s operational risk and high financial leverage.
MDL, which advised shareholders to reject the initial offering, is yet to respond to the increased offer.