Photo by: Bloomberg
PERTH (miningweekly.com) – Copper/gold miner PanAust on Monday announced that it had received an unsolicited takeover offer from shareholder Guangdong Rising Asset Management (Gram), which was offering a cash price of A$1.71 for each share it did not already own.
Gram currently has a 22.5% interest in PanAust.
Gram in April last year also made a play for PanAust, offering the company A$2.20 in cash for all the outstanding shares, and valuing the offer at some A$1.4-billion.
While PanAust at the time actively pursued an alternative offer, the transaction never came to fruition.
In its notice of intention sent to PanAust, the Chinese shareholder pointed out that the new offer price was a 40.1% premium to PanAust’s one-month volume weighted average price, and a 34% premium to the company’s three-month volume weighted average price.
The takeover would be funded from Gram’s cash reserves and available debt facilities.
Gram would present its bid to PanAust shareholders as soon as possible. The proposal would not be conditional on any regulatory approvals.
PanAust said that the offer came at a time when the company’s share price, and the spot prices for copper and gold, have been trading at a near five-year low.
The company said that it would consider the takeover offer, and would provide advice to shareholders in due course.
PanAust faced a tough year in the period ending December, with falling metals prices resulting in a decline in sales revenue and an impairment charge of $264.7-million, resulting in a full-year loss of $221.4-million.