CO2 Group launches bid for Oil Mallee Co

Perth-based CO2 Group Ltd has launched a cash takeover offer for private mallee eucalyptus planting firm The Oil Mallee Company of Australia Ltd in a bid worth up to $700,000.

CO2, through its wholly owned subsidiary Australian Carbon Sinks Ltd, is offering 32.5 cents for each OMC share, which represents a premium of about 63 per cent to the issue price of OMC shares in its last capital raising carried out last year.

CO2 already holds a 29.9 per cent interest in OMC and both company are in a joint venture over carbon sequestration projects.

The offer is condition on CO2 obtaining an interest in over 50.1 per cent of OMC shares and there being no material adverse change in OMC.

CO2 said the maximum cash consideration payable to acquire the outstanding OMC shares is about $700,000.