‘Undervalued’ Lemur accepts off-market Bushveld takeover
JOHANNESBURG (miningweekly.com) – ASX-listed Lemur Resources has accepted an off-market takeover offer by majority shareholder Bushveld Minerals that sees the Africa-focused group paying A$0.06 for each ordinary Lemur share, valuing the company at A$10.87-million.
Noting that it had accepted the offer “in the absence of a superior proposal”, Lemur said on Friday that an independent expert had considered the offer “not fair but reasonable”, notwithstanding that the offer price was below the expert’s preferred valuation of A$0.17 apiece.
The company believed the offer provided certainty of cash consideration and a premium to recent trading of Lemur shares and removed the risks associated with holding shares in Lemur, although it acknowledged that shareholders would be unable to benefit from the potential future upside in the company.
“The independent directors consider a superior proposal is unlikely, as Bushveld holds a 63.6% relevant interest in Lemur [despite there now being] risks to remaining a minority shareholder in Lemur, including potential delisting from the ASX,” it said in a statement.
The offer remained conditional upon Bushveld receiving sufficient acceptances so that, at the end of the offer, it was entitled to proceed with compulsory acquisition for the remaining shares in Lemur.
Lemur, through its subsidiary Coal Mining Madagascar, held 11 concession blocks in south-west Madagascar, covering the Imaloto coal basin. The company was also in the process of acquiring two additional blocks contiguous to its existing holdings.
Bushveld Minerals held a number of vanadium- and titanium-bearing magnetite and tin assets in Southern Africa, including the Bushveld vanadium project and the Mokopane tin project, in Limpopo.
The closing date for the offer was July 17.
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