PERTH (miningweekly.com) – ASX-listed Moly Mines has five days in which to match a takeover offer from fellow-listed Metro Mining for Gulf Alumina, after the latter determined Metro’s offer to be a superior proposal.
Moly Mines in September launched a combination of A$0.46 in cash and 1.4 options for each Gulf share held, with the company revealing plans to progress Gulf’s Skardon River project, in Queensland, into production as “soon as possible”.
Gulf directors have backed Moly’s offer.
However, Metro Mining, which holds a 39% stake in Gulf, this week launched a competing bid for the takeover target, offering Gulf shareholders a choice of 60c in cash a share, or a cash and shares alternative of 50c in cash and one metro share for each Gulf share held.
Based on Metro’s closing price of 11c a share on October 24, the cash and share alternative was valued at 61c a Gulf share.
Metro said on Wednesday that its offer provided a logical opportunity to unlock over A$200-million in synergies from combining its own and Gulf’s complementary projects, with the combination also creating a leading independent Cape York-focused Australian bauxite company.
Metro’s offer is subject only to its interest in Gulf exceeding 51% during the offer period.
Gulf directors have advised Moly Mines that the Metro offer is considered superior, and Moly Mines has five business days to match Metro’s offer, before the Gulf directors withdraw their recommendation that shareholders accept the Moly offer.
Moly said it is currently considering its position, and that it will respond within the required timeframe.