17/05/2011 - 10:47

BC Iron report says Regent price too low

17/05/2011 - 10:47

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BC Iron has released the independent expert's report that shaped its decision to terminate a takeover deal with Hong Kong's Regent Pacific on the basis that the offer did not provide adequate value.

BC Iron has released the independent expert's report that shaped its decision to terminate a takeover deal with Hong Kong's Regent Pacific on the basis that the offer did not provide adequate value.

KPMG Corporate Finance's assessed value range for BC Iron at the date of its original report was between $3.80 and $4.13 per share, while Regent's offer was $3.30/share.

KPMG said it formed the opinion that the offer was neither fair nor reasonable in regards to both valuation and other qualitative matters.

At 10:44AM (WST) BC Iron's shares had gained 1.03 per cent to trade at $2.93.

The miner said KPMG's value range included a full control premium and took into account material developments at BC Iron since the scheme was proposed in January.

Recently, BC Iron approved an accelerated production ramp up plan for its Nullagine joint venture with Fortescue Metals Group in Western Australia's Pilbara region to five million tonnes per year in the first quarter of 2012.

BC Iron was urged to release the report after last week terminating the once-friendly, on-again off-again $345 million transaction with Regent Pacific, which said swiftly after the deal was axed that it would not offer a higher price.

Meanwhile, BC announced today that Steven Chadwick had resigned as a director of the company, following his temporary relocation to Canada due to work commitments.

BC chairman Tony Kiernan said: "Steve was a founding director of the Company and has made an invaluable contribution to its progress and development.

"We thank him for this and wish him well with his future endeavours"

 

 

 

 

 

 

 

 

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