Metals X warns Aditya that time is running out
PERTH (miningweekly.com) – ASX-listed Metals X has told the shareholders of takeover target Aditya Birla that a protracted sales process of the Nifty copper mine, would not be in their best interest.
Aditya earlier this week advised shareholders to reject a takeover offer from Metals X, which was offering one of its own shares for every five Aditya shares held, valuing the company’s shares at 24.7c each.
Aditya said the unsolicited offer materially undervalued the company and would not be in the best interest of shareholders.
It also said the company had started a strategic review, which included the consideration of capital management initiatives, and that it would be approaching third parties shortly to take part in this process.
Aditya invited Metals X to participate in the strategic review process, which would be completed by the March 2016 quarter.
However, Metals X responded by saying this significant delay and uncertainty of outcome was not in the best interest of shareholders.
It further urged Aditya to clarify its net cash position and the company’s cash needs going forward, as well as to explain to its shareholders the link between a failure to invest and the ongoing value deterioration of the Nifty mine.
“Metals X’s offer was made on the basis that the company is ready to commence the significant effort of turning around the underperforming Nifty mine. We believe the Aditya board’s recommendation against the Metals X offer and the start of a much slower process is unfortunate and, ultimately, will continue the deterioration of value of the Nifty assets,” Metals X CEO Peter Cook said.
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