Coal miner MC Mining’s share price on the JSE rose by more than 6% on March 8, after it announced that it had received a letter from fellow coal miner Vulcan Resources outlining a non-binding proposal to make an off-market cash takeover offer for all the shares in MC Mining at an indicative price of between A$0.17 and A$0.20 a share.
The proposed offer values JSE-, Aim- and ASX-listed MC Mining at between A$69.34-million and A$81.58-million.
The proposal contains a number of customary conditions, including the completion of a due diligence process, and is not a binding offer currently capable of acceptance by shareholders of MC Mining.
The independent board committee (IBC) established by MC Mining to assess the terms of another recent buyout offer has noted that the offer is at an indicative price range that is higher than the offer of A$0.16 a share proposed by Goldway Capital Investment Limited.
The IBC has reiterated its recommendation to shareholders not to accept the current Goldway Capital Investment Limited offer.
The IBC will evaluate the indicative terms in Vulcan’s proposal letter, including taking advice from its financial and Australian and South African legal advisers, Adelaide Equity Partners Limited as Financial Advisor, K&L Gates as Australian legal advisers and Falcon & Hume Inc as South African legal advisers.
MC Mining remains committed to keeping shareholders appraised of developments and intends to make a further announcement when more complete and definitive details are received.
Vulcan is the operator of the Moatize coal mine, the largest operating steelmaking coking coal mine in Mozambique, and Africa.
MC Mining owns coal mining operations in South Africa.