MC Mining's Uitkomst Colliery
JSE-, ASX- and Aim-listed MC Mining has received a letter from two of its largest shareholders Senosi Group Investment Holdings and Dendocept, acting in a consortium on behalf of shareholders and associates said to hold about 64.5% of MC Mining's shares in issue, proposing an off-market cash takeover offer for all shares in MC Mining.
The proposal letter also states that the consortium has made an application to the Australian Securities & Investments Commission under Section 655A(1) of the Corporations Act, seeking relief from Section 606 of the Act to permit the consortium to enter into a joint bidding agreement for the purposes of undertaking a joint takeover bid for the company.
MC Mining, which owns and operates coal assets in South Africa, notes that the letter referred to a confidential nonbinding indicative offer (NBIO), dated September 5, which set out an indicative cash consideration of between A$0.20 and A$0.23 a share.
Following the receipt of the NBIO, MC Mining had established an independent board committee (IBC) to consider the offer. The committee members are Khomotso Mosehla, Nhlanhla Nene, Andrew Mifflin and Julian Hoskin.
The committee has been evaluating the indicative terms of the NBIO, including taking advice from its financial and Australian and South African legal advisers.
In the meantime, MC Mining advises shareholders that the consortium has yet to state a definitive offer price for the proposed takeover.
The IBC is, therefore, advising shareholders to take no action at this stage, with further information to be shared as soon as they become available.
MC Mining's share price on the JSE rose by more than 24% on November 2 following the announcement.