MOD shareholders flock to Sandfire cash
PERTH (miningweekly.com) – Shareholders of takeover target MOD Resources have exceeded the cash consideration cap of A$41.6-million under the takeover offer from fellow-listed Sandfire Resources.
Copper miner Sandfire in June launched a takeover offer for Africa-focused MOD, offering shareholders either 45c in cash for each of their shares, capped at A$41.6-million, or 25% of the overall consideration, or 0.0664 Sandfire shares for each MOD share held.
MOD on Wednesday reported that 159 of its shareholders, holding more than 101.17-million fully paid ordinary shares, have opted for the cash offer. However the total consideration payable for these shares would be around A$45.5-million, exceeding the cap.
As a result, shareholders who have made the cash election will have their cash consideration scaled back on a pro-rata basis to allow the amount of cash consideration payable to reach the maximum cash consideration, while the remainder of the considerations will be paid in Sandfire shares.
MOD shareholders are expected to vote on the takeover offer on October 1.
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