PERTH (miningweekly.com) – Takeover target Mineral Deposits (MDL) has urged shareholders to accept the revised offer from joint venture partner Eramet.
Eramet earlier this month declared its offer for MDL unconditional, while maintaining the offer price of A$1.75 a share in cash for each MDL share held, saying it will not be increasing its offer.
In its target statement, MDL said on Tuesday that although the company had engaged with third parties regarding a potential competing offer, no such proposals have emerged, while Eramet’s voting power had increased to 43.41%.
“The MDL directors have also had regard to the fact that although Eramet’s voting power in MDL is currently less than 50%, Eramet is now the single largest MDL shareholder and, with a voting power of 43.41%, is effectively in a position where it has control of MDL,” the company said.
With Eramet holding the lion’s share of MDL shares, the company warned shareholders that liquidity of the company’s shares would be substantially reduced.
Additionally, if Eramet gained a foothold of more than 50%, it would seek to remove MDL shares from the official ASX list, meaning that the remaining shareholders will be unable to trade their shares on the bourse.
MDL told shareholders that the cash offer provided shareholders with certainty following the effective change of control, and urged their remaining shareholders to accept the offer.
Eramet’s takeover offer will close on July 13.