PERTH (miningweekly.com) – ASX-listed Metals X has extended its off-market takeover offer for fellow listed Aditya Birla until February 24.

Metals X initially offered one of its own shares for every five Aditya shares, valuing the takeover target’s shares at 24.7c each. However, in December, Metals X increased its offer to one of its own shares for every 4.75 Aditya shares held, with the company also waiving a number of conditions of the offer.

Metals X earlier this week waived the 90% minimum acceptance condition, with the metals miner now holding an 18.24% interest in Aditya Birla.

The takeover target recently told shareholders that a strategic review of the company and its assets was still under way, and would likely be completed in the March quarter of this year.

“In our view, the Aditya Birla board must now fully inform its shareholders as to the full financial position and prospects of the company and the outcomes of the strategic review process it has chosen to undertake, so that shareholders can make an appropriate and informed decision on whether to accept or reject Metals X’s offer,” said Metals X CEO Peter Cook.

In terms of Aditya Birla’s majority shareholder, Hindalco, which had so far rejected the takeover in favour of the strategic review process, Cook said that Metals X was willing and prepared to discuss its offer.

“Our offer is good for them, providing a premium in terms of value and a substantially better opportunity for extended copper production and offtake than the approach currently being taken by the Aditya Birla board in stewardship of its assets.”

Cook also questioned Aditya Birla’s current mining plan for the Nifty copper operation, in Western Australia, after the company this week reported an increase in production for the December quarter, on the back of higher grades.

Cook noted that the mined grade reported in Aditya Birla’s quarterly report was significantly above the published Joint Ore Reserves Committee-compliant resource and reserves grade.

He added that while the high grading brought cash flow into the past quarter, it inevitably diminished the value of the remaining reserves and could cause serious future mine planning issues.