13/03/2017 - 10:31

Amex to accept $54m takeover offer

13/03/2017 - 10:31

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Perth-based junior explorer Amex Resources is set to be wholly acquired by one of its shareholders after a lucrative takeover proposal was made, valuing the iron ore hopeful at $54 million.

Amex Resources' Mba Delta ironsands project in Fiji.

Perth-based junior explorer Amex Resources is set to be wholly acquired by one of its shareholders after a lucrative takeover proposal was made, valuing the iron ore hopeful at $54 million.

Amex told the market today it had received an off-market takeover offer of 50 cents in cash for every share Waratah International doesn’t already hold in the business, representing a 37.5 per cent premium to the target’s 20-day volume-weighted average price.

Asia-based Waratah Group is a private company which is solely directed by Amex’s major shareholder, Kenny Zhang.

“Amex’s board of directors unanimously recommends that Amex shareholders accept the offer, in the absence of a superior proposal,” Amex said in a statement.

“In recommending the offer, the directors had regard to the fact that the all-cash offer provides Amex shareholders with certain value and liquidity for their Amex shares compared to the risks and uncertainty associated with remaining an Amex shareholder.

“In particular, the directors considered Amex’s likely ability to refinance amounts owing to its lenders, or alternatively to raise additional finance through debt or equity to meet Amex’s exploration and development commitments and continue as a going concern.

“However, there is no guarantee that the company will be able to obtain lower-cost financing in the current economic climate, should the offer be unsuccessful.”

Amex’s main focus is its Mba Delta ironsands project in Fiji.

Shares in Amex were 25 per cent higher to 45 cents each this morning.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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