PERTH (miningweekly.com) – Takeover target PanAust on Wednesday blamed a takeover offer from shareholder Guangdong Rising Asset Management (Gram) for the company’s shares remaining fairly stagnant since early April.
In a communication to shareholders, PanAust pointed out that the share price of other listed copper miners had increased by around 20% in the time since Gram initially made its offer.
However, the value of PanAust shares had only increased by some 2.3% during the same time.
The miner said that the company’s share price has been linked closely to the Gram offer, meaning that shareholders in PanAust were unable to benefit from the changing sentiment towards copper miners.
PanAust again urged shareholders to reject the Gram offer.
Gram was offering shareholders in PanAust A$1.71 in cash for every share held; however, the ASX-listed PanAust maintained that the offer did not adequately recognise the long-term strategic value of the Frieda River copper project, in Papua New Guinea.
PanAust also maintained that Gram issued its takeover offer at a low point in the commodity price cycle.
PanAust shares were trading at A$1.74 a share at the time of writing.