Metals X bid for Aditya Birla rejected

Metals X’s $82 million takeover offer for embattled copper miner Aditya Birla Minerals won’t succeed after the target’s largest shareholder said it wouldn’t be accepting the offer.

Aditya told shareholders to reject the ‘highly conditional’ offer for one Metals X share for every five Aditya shares, saying the offer materially undervalued the company and was not in the best interests of shareholders.

The copper miner’s 51 per cent shareholder, Indian company Hindalco Industries, informed Aditya that it would be rejecting the offer, which had a minimum 90 per cent shareholder acceptance condition.

Aditya also said that, after the sale of its Mt Gordon copper mine in Queensland, it would have about $80.8 million cash in hand and in security deposits – just less than what the Metals X bid was valued at.

Metals X is ranked #11 in the BNiQ List of Gold Miners, ranked by annual production, and #17 in the BNiQ List of Public Companies – Resources, ranked by total revenue.

Aditya is ranked #45 on the BNiQ List of Public Companies – Resources.

Aditya appointed Moelis Australia Advisory to assist with a strategic review on the business earlier in the month, and for the sale of Mt Gordon.

“The strategic review has commenced and interested parties will be approached shortly to take part in the process,” the company said in a statement.

“Metals X is welcome to participate in this process, alongside other interested parties.”

Metals X shares rose 0.4 per cent to $1.31 each, while Aditya shares were 4.8 per cent higher to 21.5 cents at 9:50am.