PERTH (miningweekly.com) – The directors of takeover target Aditya Birla Minerals, and the company’s largest shareholder Hindalco Industries, have backed an increased offer from ASX-listed Metals X.

Metals X initially offered one of its own shares for every five Aditya Birla Minerals shares, valuing the takeover target’s shares at 24.7c each. However, in December, Metals X increased its offer to one of its own shares for every 4.75 Aditya shares held.

Hindalco, which owns a 51% interest in Aditya Birla Minerals, has so far been reluctant to back the takeover offer.

However, Metals X reported on Monday that Hindalco and the Aditya Birla Minerals board have now given their support to an increased offer, after the Australian gold and tin producer added a cash sweetener to bring Aditya into its fold.

Metals X would issue one of its own shares for every four-and-a-half Aditya Birla Minerals shares held, along with an 8c a share cash payment. The offer valued Aditya Birla Minerals shares at 32.9c each.

The increased offer was conditional upon Reserve Bank of India regulatory approval.

Hindalco would also only accept the offer if no superior proposal was forthcoming.

Metals X told shareholders that the additional cash component of the offer was supported by a specific purpose loan facility of A$25-million, which was in place with Citibank.

Aditya Birla Minerals MD Neel Patnaik, meanwhile, said that the company’s board believed the increased offer, if made available, would represent a superior, certain and fair outcome for the company’s shareholders.

The increased offer would close on July 29, allowing Hindalco enough time to secure regulatory approval.

Aditya Birla Minerals undertakes mining and copper exploration activities at the Birla Nifty copper operation in the Pilbara.  Aditya Birla Minerals produced 12 698 t and 44 565 t of copper-in-concentrate for the financial years 2015/16 and 2014/15, respectively.