Aditya tells shareholders to reject Metals X’s takeover offer
PERTH (miningweekly.com) – The board of ASX-listed Aditya Minerals on Monday told shareholders to reject an A$82.1-million takeover offer from fellow listed Metals X, while major shareholder Hindalco Industries has said it will not accept the deal.
Metals X earlier this month launched a takeover offer for the embattled copper miner, offering one of its own shares for every five Aditya Birla shares held, valuing the company’s shares at 24.7c each.
The offer price was a 60.6% premium based on the two companies’ closing prices on October 14, and a 46.9% premium on the one-month volume weighted average price of both companies’ shares.
Aditya on Monday said the unsolicited offer materially undervalued the company and would not be in the best interest of shareholders.
Metals X’s offer was also conditional upon a 90% uptake of the takeover offer, which would require Hindalco’s cooperation, as it owned a 51% stake in Aditya.
Meanwhile, Aditya pointed out that, at the end of September, the company had some A$33.4-million cash at hand, in addition to A$50.8-million worth of security deposits relating to environment and performance bonds and an escrow deposit for the sale of its Mt Gordon asset.
In its takeover offer, Metals X argued that the company was ideally placed to take charge of Aditya’s underperforming Nifty copper mine, given its underground mining experience, technical capability and financial capacity.
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