https://www.engineeringnews.co.za

Auctus offer for Mungana ‘not fair’ – independent expert

29th May 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – An independent expert has supported ASX-listed Mungana Goldmines’ decision not to accept a takeover offer from Auctus Chillagoe.

Auctus launched its 13.5c-a-share offer for all the issued shares in Mungana in April, arguing that the offer gave Mungana shareholders certainty of value and liquidity.

The offer was a 29% premium to the closing price of Mungana shares on April 28, and a 26% premium to the 30-day volume-weighted average price of Mungana shares for the period ended April 28.

The directors of Mungana had previously labelled the offer opportunistic, saying it materially undervalued the company and its assets.

An independent expert has agreed, saying the unsolicited takeover offer was neither fair, nor reasonable.

The independent expert had assessed that a fair market value for Mungana’s shares would be between 24.19c and 31.69c each. The expert warned that Mungana shareholders that accepted the Auctus offer would forgo the opportunity to participate in the potential near-term growth prospects offered by Mungana, and would receive less than fair market value for their shares.

Mungana had again recommended that shareholders reject the offer.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

ATI Systems
ATI Systems

ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.049 0.955s - 140pq - 2rq
Subscribe Now