Inova agrees to Chinese takeover
PERTH (miningweekly.com) – The independent directors of Inova Resources have advised shareholders to accept a $160-million takeover offer from China’s Shanxi Donghui Coal Coking & Chemicals Group, subject to certain conditions.
In its target statement released on Friday, ASX- and TSX-listed Inova said that shareholders should accept the bid if the offer was declared unconditional, and if its largest shareholder, Turquoise Hill Resources, accepted the offer.
Turquoise Hill has agreed to sell an initial 14.9% of its 56.2% shareholding in Inova, at a cash price of 22c a share.
The Shanxi Donghui offer was a 55% premium to the three-month volume-weighted average price of Inova’s shares on the ASX, and a 29% premium to the share price on August 20, a day before the offer was launched.
The takeover was subject to a number of conditions, including a 51% minimum acceptance condition, as well as regulatory approval from both the Australian and Chinese regulatory bodies.
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