Base persists with WTR takeover

Mineral sands miner Base Resources is pushing on with its takeover bid for World Titanium Resources, despite the target declaring yesterday the bid is not capable of succeeding.

WTR said it has received binding undertakings from shareholders who represent more than 60 per cent of its issued shares that they will not accept the bid.

As such, WTR said the takeover is incapable of reaching Base’s minimum 40 per cent acceptance level.

The relevant shareholders include ASX-listed Mineral Deposits (19.1 per cent) and two Luxembourg-based  entities – long-term shareholder Boulle Titanium (20.4 per cent) and new shareholder AMED Fund II SICAR (17.1 per cent).

AMED acquired its stake on 24 December, one day after Base announced its takeover, and paid 6 cents per share, substantially above the 4 cent valuation the scrip offer puts on WTR shares.

WTR shares closed higher today at 4.6 cents.

Base advised today that its bidders statement has been dispatched to WTR shareholders.

“The directors of Base continue to believe there are compelling reasons to accept the offer and encourage World Titanium shareholders to read the bidders statement carefully,” the company said in a statement.

“Base intends to engage directly with the World Titanium shareholders holding substantial interests to encourage their support for the successful completion of the offer.”

Base is offering one of its shares for every five World Titanium shares, valuing the target (at the time of the announcement) at 4 cents per share or $14.5 million.

JP Morgan Asset Management (UK), which holds 7.7 per cent of World Titanium, entered into a pre-bid acceptance agreement with Base.

Base currently operates the Kwale project in Kenya and is looking to add WTR’s Toliara Sands project in Madagascar to its portfolio.

Base’s corporate adviser is RFC Ambrian, its legal adviser is King & Wood Mallesons, and its public relations adviser is Cannings Purple.