PERTH (miningweekly.com) – Takeover target Mineral Deposits (MDL) have urged shareholders to reject the improved offer from joint venture (JV) partner Eramet, saying that it was still below the independent expert’s valuation.
Eramet this week increased its offer for MDL from A$1.46 a share to A$1.75 a share, increasing MDL’s valuation from A$291-million to A$322-million.
The French company has warned that the offer price would not be increased in the absence of a superior proposal.
However, MDL on Thursday maintained that the offer undervalued the company, citing the independent expert’s valuation of between A$2.04 a share and A$2.52 a share, and reminding shareholders that the revised offer remained conditional.
“While the board welcomes an increase in the offer price, our directors maintain their view that the revised offer still does not reflect the true value of the company,” said MDL chairperson Nic Limb.
“The board believes the revised offer continues to undervalue MDL’s shares, where its JV assets are operating at or near current capacity as the mineral sands commodity cycle continues to improve.”
The revised offer will remain open until July 13, unless extended.