MC Mining Ltd on Monday again urged its shareholders to reject a takeover offer from Goldway Capital Investments Ltd.
The Western Australia-based coal miner in South Africa owns Uitkomst Colliery, an operating metallurgical and thermal coal mine, and Makhado project, an exploration and evaluation asset.
The company said on Monday it had released its formal target’s statement following the 0.16 Australian dollar cent cash off-market takeover bid by Goldway.
Goldway, a special purpose vehicle incorporated in Hong Kong, launched an off-market takeover bid early last month. It offered 16 Australian dollar cents for all shares the consortium of joint-bidders do not own.
As of Friday, the consortium held a 65.6% stake in MC Mining, up from 64.3%.
MC Mining said the target’s statement sets out the independent board Committee’s formal response to the offer. The board has said to its shareholders, ‘do not accept’.
The company had said last month the offer is subject to a minimum acceptance condition that Goldway receives acceptances in respect of at least 50.1% of the shares not held by Goldway and the joint bidders.
In practical terms, this means that the joint bidders must be interested in or acquire relevant interests in at least 82.19% of the total shares on issue before any offer consideration will be paid to any MC Mining shareholders who have accepted the offer, and before Goldway can act on any intention to delist MC Mining.
Goldway has said the offer values MC Mining’s capital at around A$65.3 million, equating to £33.8 million or R 803 million. It has an enterprise value of around A$75.5 million.
In December, MC Mining had received a revised takeover offer, which was first made by Senosi Group Investment Holdings Pty Ltd and Dendocept Pty Ltd in early November.
Late in December, Senosi and Dendocept indicated that they intended to acquire all shares that they do not own for a cash price of 16 cents per share. Their offer is on behalf of shareholders with a 64% stake.
MC Mining shares closed at 0.14 Australian cents in Sydney on Monday. They were down 3.5% at 7.00 pence in London, but rose 1.1% to R 1.82 in Johannesburg.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
