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PanAust seeks alternative bids to A$1.4bn Gram offer

PanAust seeks alternative bids to A$1.4bn Gram offer

Photo by Bloomberg

30th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals miner PanAust was actively pursuing alternative takeover offers, after Chinese shareholder Guandong Rising Assets Management (Gram) made a nonbinding indicative and incomplete offer worth an estimated A$1.4-billion.

In early April, Gram offered PanAust A$2.20 in cash for all the outstanding shares in the copper, gold and silver miner. While the offer price was subsequently raised to A$2.30 a share, the PanAust board said that the price was still below the level at which the company was prepared to recommend a takeover offer.

Chairperson Garry Hounsell told shareholders at the company’s annual general meeting on Friday that while Gram was being allowed to undertake a due diligence of PanAust, to assist the shareholder in improving its offer price, PanAust would also seek out alternative proposals, offering interested parties similar access to what was being afforded to Gram.

“At this stage, the company has not received a formal takeover offer from Gram, or any other potential bidder, that is capable of acceptance by the company’s shareholders, and there is no certainty that one will eventuate,” Hounsell said.

During the three months to March, PanAust delivered a solid production performance, delivering 18 123 t of copper in concentrate from its Phu Kham mine and 23 356 oz in dore at its Ban Houayxia gold/silver operation, in Laos.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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