UK-based Bushveld Minerals has launched its second takeover bid for local coal explorer Lemur Resources in two years, this time proposing to acquire all the shares it doesn’t own in the business for about $10.9 million.
Bushveld, a South Africa-focused miner listed on the London Stock Exchange, has offered Lemur shareholders 6 cents for every share it doesn’t own in the business.
Bushveld is currently Lemur’s largest shareholder with a 63.6 per cent stake.
The deal represents a 3.4 per cent premium to Lemur’s last closing price of 5.8 cents, and 37.3 per cent premium to its 12-month volume weighted average price.
Two of Lemur’s current directors are also directors in Bushveld, including chief executive Anthony Viljoen.
Lemur director Fortune Mojapelo is Bushveld’s chief executive.
“Bushveld is advised that certain Lemur shareholders, who together hold about 10 per cent of the issued capital of Lemur, intend to accept the offer... in the absence of a superior proposal,” Bushveld said.
If the offer is accepted, it is anticipated that Lemur will be removed from its ASX listing.
“This offer, if successful, will allow Lemur shareholders the certainty of a cash exit for their shares and transfer the risk associated with developing Lemur’s assets to its parent company, Bushveld,” Mr Mojapelo said.
“For Bushveld shareholders, the offer provides an opportunity for greater alignment of Bushveld’s and Lemur’s interests.”
In a statement, Lemur said the board would consider the offer and respond in due course.
In 2013, Bushveld had offered three of its shares for every five Lemur shares in a $19 million takeover offer, but the board rejected the offer and labelled it as neither fair nor reasonable.
Lemur shares were 3.4 per cent lower to 5.6 cents at 1:15pm.
