Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Moly Mines will continue to progress its takeover of Gulf Alumina, despite the possibility of a competing bid from shareholder Metro Mining.
Metro Mining earlier this week announced its intention to launch a takeover for Gulf Alumina, under which it will offer 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.
The offer is expected to rival Moly Mines’ bid of a combination of A$0.46 in cash and 1.4 options for each Gulf share held.
The directors of Gulf have previously backed the Moly Mines bid.
However, Moly Mines said on Thursday that Metro had only signalled its intention to make an offer, and without launching an actual bid, the Metro offer could not be considered a "superior proposal”.
“Under the terms of the offer implementation agreement between Moly and Gulf, Moly will have five business days in which to match any competing offer which is determined to be a superior proposal before Gulf directors can withdraw their recommendation of Moly’s offer,” the company said in a statement.
Moly Mines questioned whether the Metro bid, in its current form, would satisfy the requirements of a "superior proposal".