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Ochre makes off-market bid for Gondwana

Ochre makes off-market bid for Gondwana

Photo by Reuters

12th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed explorer Ochre Group Holdings has launched an off-market takeover of fellow listed Gondwana Resources.

Ochre, which currently holds a 17.65% interest in Gondwana, is offering shareholders A$0.082 in cash for all the remaining shares held, on the condition that a rights issue did not proceed, or did so at the behest of Ochre.

Last month, Gondwana launched the one-for-one rights issue, at a price of A$0.032 a share, in the hopes of raising A$632 110 to fund exploration and the evaluation of projects in Western Australia’s Parker Range, Gascoyne, East Pilbara and elsewhere.

Ochre on Monday insisted that if the rights issue proceeded, it should be priced at A$0.032 a share, should attach one free option, exercisable at 5c a share, for every two shares offered, and should not be underwritten.

Ochre also demanded that the share and rights issue should take place before June 23.

Ochre told Gondwana shareholders on Monday that its offer price for the company’s shares represented a significant premium to the recent share price. In fact, the offer added a 49.09% premium to the closing price of Gondwana shares on April 30, and a 156.25% premium to the issue price of the new Gondwana shares under the rights issue.

The takeover offer was subject to a number of conditions, including a 50% minimum acceptance, as well as shareholder and regulatory approval.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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