MC Mining committee expresses frustration as Goldway extends offer period
JSE-, ASX- and Aim-listed MC Mining has advised that the offer period for a takeover offer made by Goldway Capital Investment has been extended to April 19.
The offer would have initially lapsed on April 5; however, the Australian Securities and Investments Commission has granted relief to Goldway for a two-week extension of the offer period.
Goldway in January announced a A$0.16 off-market takeover offer to acquire all of the shares in MC Mining that it does not currently own.
MC Mining’s Independent Board Committee (IBC), which has maintained throughout the process that shareholders should not accept the offer, says Goldway has reneged on its undertaking not to extend the offer, in an attempt to pressure minority shareholders to accept the offer.
Goldway’s 76.4% interest in the shares of MC Mining falls short of the minimum 82.19% needed to satisfy the minimum acceptable condition for the offer to proceed.
Goldway is a consortium comprising MC Mining’s biggest shareholders, including Senosi Group Investment Holdings and Dendocept.
The IBC deems Goldway’s extended offer period to be an opportunistic move.
Goldway has notified that total acceptances of the offer from shareholders represents 12.1% of the issued shares, being only 34% of the shares to which the offer relates.
The IBC says it is “extremely disappointed” in Goldway’s failure to honour the “best and final” statements that it previously made to shareholders.
A report prepared by an independent expert from BDO Corporate Finance also found the takeover offer to be unreasonable and unfair to shareholders, echoing the IBC’s sentiment.
BDO said the value of an MC Mining share is closer to A$0.21 – at least – and A$0.35 – at best – compared with Goldway’s offer price of A$0.16 apiece.
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