19/06/2015 - 14:52

Nod for Rutila, Lemur takeovers

19/06/2015 - 14:52

Bookmark

Upgrade your subscription to use this feature.

Rutila Resources and Lemur Resources have both received ticks of approval by independent experts for their respective off-market takeover offers by foreign bidders.

Nod for Rutila, Lemur takeovers

Rutila Resources and Lemur Resources have both received ticks of approval by independent experts for their respective off-market takeover offers by foreign bidders.

In a statement today, Lemur announced that AIM-listed Bushveld Minerals’ proposed $10.9 million takeover offer was considered to be not fair but reasonable by its independent directors, Ryan Rockwood and Shannon Coates.

The offer is valued at 6 cents a share, whereas the independent directors have valued Lemur at more than nearly three times that.

However, the directors considered the certainty of a cash consideration and the premium price against the company’s recent trading prices to be a worthy transaction.

The South Africa-focused Bushveld’s bid was its second in two years – it had offered three of its shares for every five Lemur shares in a $19 million takeover offer in 2013, but the board rejected the offer and labelled it as neither fair nor reasonable.

Meanwhile, Pilbara infrastructure developer Rutila has recommended its shareholders accept private New Zealand company Todd Corporation’s takeover bid of 30 cents cash per Rutila share, in the absence of a superior proposal.

An independent expert’s report prepared by Grant Thornton has concluded the offer as both fair and reasonable.

Rutila independent director Emmanuel Correia said there was a major contrast between the certainty of the straight-forward, premium cash bid offered by Todd compared to the challenges facing the junior resources sector in obtaining the necessary funding in the current environment, coupled with Rutila’s existing debt position.

“The offer from Todd is also priced at the high end of our valuation range by the independent expert, who has concluded the offer is fair and reasonable,” Mr Correia said.

Lemur and Rutila shares both closed unchanged at 5.8 cents and 28.5 cents respectively.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options