Photo by: Bloomberg
PERTH (miningweekly.com) – Copper miner PanAust on Tuesday confirmed that it has become the takeover target of China’s Guandong Rising Assets Management (Gram), in a deal valued at an estimated $1.4-billion.
PanAust told shareholders that it had received a confidential, nonbinding agreement from Gram in early April, under which the Chinese firm offered to acquire all the outstanding shares in PanAust for $2.20 a share in cash.
The proposed takeover included a number of conditions, including regulatory approval and a 50.1% minimum acceptance.
Gram subsequently increased its indicative offer to $2.30 a share in cash.
Gram already holds a 23% interest in PanAust.
PanAust said it had considered the revised indicative price, but had advised Gram that the price remained materially below the level at which the board was prepared to recommend a takeover offer.
The copper miner has agreed to permit Gram access to due diligence information to assist in “materially” improving its offer.
PanAust holds operating copper and gold mines in South East Asia, including the Phu Kham copper/gold mine and the Ban Houayxai gold/silver mine.