23/04/2010 - 14:30

Cape Lambert increases offer for DMC

23/04/2010 - 14:30

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Tony Sage-led Cape Lambert Resources has increased its offer for DMC Mining, matching the offer put forward by an unnamed rival almost 10 days ago.

Cape Lambert increases offer for DMC

Tony Sage-led Cape Lambert Resources has increased its offer for DMC Mining, matching the offer put forward by an unnamed rival almost 10 days ago.

DMC shareholders will now be offered 46 cents per share by Cape Lambert, an increase of six cents per share from the original offer of 40 cents which valued the company at $34 million.

Cape Lambert said the increased offer represented a significant premium to the trading price of DMC prior to the announcement.

Cape Lambert already holds a 36.2 per cent stake in DMC Mining Shares and is urging DMC Mining shareholders to accept its improved offer.

Shares in DMC were up two cents, or 4.49 per cent, to 46.5 cents at AEST1620 while Cape Lambert had fallen off half a cent, or 1.03 per cent, to 48 cents.

 

Full announcement below:

CAPE LAMBERT RESOURCES LIMITED INCREASE OFFER CONSIDERATION FOR DMC MINING LIMITED (DMC MINING)

The Board of Cape Lambert Resources Limited (Cape Lambert) (ASX:CFE) has today resolved to increase the consideration under its offer for all of DMC Mining's Shares (Offer) by increasing the cash offered.

DMC Mining Shareholders will now be offered $0.46 for every one DMC Mining Share they hold.

The increased Offer of 46 cents cash per DMC Mining Share represents a significant premium to the trading price of DMC Mining Shares prior to announcement of the Offer:

(a) a 53.33% premium to DMC Mining's share price of 30 cents on 22 March 2010, 1 trading day before Cape Lambert announced its takeover offer for DMC Mining (Announcement Date);

(b) a 46.04% premium to DMC Mining's volume weighted average price (VWAP) share price in the 3 months leading up to the Announcement Date; and

(a) a 57.15% premium to DMC Mining's VWAP share price in the 6 months leading up to the Announcement Date.

Cape Lambert will be releasing as soon as is practicable the formal documents required to give effect to the above changes to its Offer, including:

(c) a formal Notice of Variation of Takeover Offer; and

(d) a First Supplementary Bidder's Statement relating to the above changes to its Offer.

Cape Lambert has a relevant interest in 36.20% of DMC Mining Shares (as of 22 April 2010, the last trading day before this announcement).

Cape Lambert urges DMC Mining Shareholders to accept Cape Lambert's Offer.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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