VANCOUVER (miningweekly.com) – Johannesburg-based Omnia Holdings has submitted a letter to the TSX-V asking it to consider denying or repricing a proposed change-of-control transaction through which Société Anonyme d’Explosifs et de Produits Chimiques (EPC) intends to take Canadian firm Nordex Explosives private.
According to a statement published on Friday by Omnia, its application to the TSX-V was intended to highlight the fact that the Nordex directors were continuing to pursue EPC’s C$0.12-a-share private placement, when the current market price was in fact C$0.27.
Omnia stated that the Nordex board should postpone a special shareholder meeting scheduled for August 18, to allow its shareholders adequate time to consider what was best for Nordex, and to make an informed decision.
However, EPC on Thursday morning announced an increased offer price matching Omnia’s unsolicited, sweetened offer of C$0.25 a share.
"We believe this latest price increase by EPC Groupe further validates the board's belief that the EPC transactions are in the best interests of the company and its shareholders,” stated Nordex chairperson Jim O'Reilly .
Omnia on Friday maintained its current C$0.25-a-share offer price for all of the Nordex common shares, saying its offer was the only transaction available to Nordex shareholders that did not heavily dilute them, or risk leaving them as stranded minorities in a controlled subsidiary.
Nordex’s TSX-V-listed stock took off since announcing the going private transaction with EPC on June 15, rising 286% in the past three months to C$0.26 a share on Friday.