https://www.miningweekly.com

MDL rejects revised offer

14th June 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Takeover target Mineral Deposits (MDL) have urged shareholders to reject the improved offer from joint venture (JV) partner Eramet, saying that it was still below the independent expert’s valuation.

Eramet this week increased its offer for 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.

The French company has warned that the offer price would not be increased in the absence of a superior proposal.

However, MDL on Thursday maintained that the offer undervalued the company, citing the independent expert’s valuation of between A$2.04 a share and A$2.52 a share, and reminding shareholders that the revised offer remained conditional.

“While the board welcomes an increase in the offer price, our directors maintain their view that the revised offer still does not reflect the true value of the company,” said MDL chairperson Nic Limb.

“The board believes the revised offer continues to undervalue MDL’s shares, where its JV assets are operating at or near current capacity as the mineral sands commodity cycle continues to improve.”

The revised offer will remain open until July 13, unless extended.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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