Independent expert backs Metalicity's play for Nex
PERTH (miningweekly.com) – An independent expert has found ASX-listed Metalicity’s bid for fellow listed Nex Metals Exploration to be both fair and reasonable to Nex shareholders.
Metalicity is currently offering Nex Metals shareholders 4.81 Metalicity ordinary shares for every Nex Metals share on issue, valuing Nex Metals equity at A$12.8-million based on Metalicity’s closing share price on September 13.
Under Metalicity’s offer, Nex Metals shareholders would own 37.5% of the enlarged entity that would hold a 100% interest in the Kookynie and Yundamindra gold projects, with improved access to capital, and an enhanced balance sheet position.
Metalicity on Tuesday said that the independent expert had found that the offer valued Nex Metals as greater than its valuation estimate of nil to A$0.01 a share, however, the suitor pointed out that the independent expert had not contributed any value to the Kookynie tailings project, as it felt that any value generated by the project would be offset by costs of rehabilitating the project.
“I encourage all Nex Metals shareholders to read the very thorough independent expert report. Other than our bidder’s statement, to date it is the only real professional material they have available to assist them in deciding on our offer, and it offers an independent assessment of the value of Nex Metals and its disputed tailings project by an external expert,” said Metalicity chairperson Andrew Daley.
“So far, the Takeovers Panel has declared two attempts by the Nex Metals board to provide a target statement to be defective and misleading. In the absence of proper advice from their board, Nex Metals’ shareholders should pay close attention to the independent expert report, which concludes that our offer is fair and reasonable, and accepting the offer is more advantageous than not accepting.”
Nex Metals has continued to urge its shareholders not to take any action around the Metalicity offer, which is set to close on May 25.
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