PERTH (miningweekly.com) – The directors of takeover target Aditya Birla have maintained their advice that shareholders reject a share offer from fellow-listed Metals X.
In its target statement on Friday, Aditya said the offer materially undervalued the company’s shares and was highly conditional, making it uncertain.
Metals X was offering one of its own shares for every five Aditya shares held, valuing the company’s shares at 24.7c each. The offer was conditional on a 90% uptake of the takeover offer, which would require Aditya’s major shareholder Hindalco Industries’ cooperation, as it owned a 51% stake in Aditya.
Aditya reiterated that Hindalco would not be accepting the Metals X offer, meaning that control of the company could not pass to Metals X.