Metals X gains ground on Aditya

Metals X has once again stepped up its pursuit of Aditya Birla Minerals, announcing today that its off-market $68 million takeover offer is now unconditional, with a quarter of Aditya shareholders already accepting the offer.

The deadline for Metals X’s offer is drawing near, with all acceptances due by February 24, but the miner is yet to gain any support from its takeover target.

“Despite four months having now passed since Metals X released its bidders statement and since Aditya appointed Moelis & Company (as adviser), Aditya has not announced to the market any progress in attracting a superior proposal to the Metals X offer, and nor has the board advised shareholders that it holds any reasonable prospect of securing a superior proposal,” Metals X said in a statmenet.

“Metals X urges Aditya shareholders to accept the offer to convert their shareholding at the ratio of one Metals X share for every 4.75 Aditya shares.”

Metals X extended its offer in mid-January after waiving a minimum 90 per cent acceptance condition.

It has received 25.6 per cent of Aditya shareholder acceptances, but it is yet to get a positive response from Indian company Hindalco Industries, which has a controlling 51 per cent stake in Aditya and has previously rejected the bid.

Metals X shares were 4.2 per cent lower to $1 each, while Aditya shares gained 7.5 per cent to 21.5 cents each at the close of trade.