Lemur slams Bushveld takeover, urges rejection
JOHANNESBURG (miningweekly.com) – ASX-listed Lemur Resources on Friday urged shareholders to reject an off-market takeover offer by Aim-listed Bushveld Minerals.
The Madagascar-focused group said that, in addition to being “neither fair, nor reasonable”, the potential transaction’s disadvantages outweighed the advantages.
In May, Lemur shareholders were offered three Bushveld shares for every five Lemur shares, valued at A$0.099 apiece – which Bushveld said was at a premium of 65.5% to Lemur's closing share price on the ASX of A$0.060 on May 10.
Lemur said that the preferred value of five Lemur shares is $0.760 and the preferred value of the offer consideration represented $0.609 for three Bushveld shares.
The deal would also result in shareholder dilution and reduced exposure to Lemur’s assets.
Further, Lemur questioned the Aim-listed company’s financial stability, noting that its ability to “continue as a going concern is uncertain”, with a cash position of £430 000 and that, without a successful capital raising of about £1.5-million, Bushveld’s intended projects and certain expenditure would need to be curtailed.
The ASX-listed firm was in a strong position, with $17.06-million in cash, and no debt, and “does not need Bushveld” to assist in bringing its projects to fruition.
Lemur concluded that the shares within Bushveld were also tightly held – with the top 4 of 130 shareholders holding 94% of the company – and trading in the shares may not be liquid.
Lemur said it was currently preparing its target statement in response to Bushveld’s offer and bidders statement.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rio Carb is an OEM (Original Equipment Manufacturer) of R-C700 Chromium Carbide (CrC) alloy clad wear plates and pipes used for heavy materials...
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
