Paladin Energy's $27 million off-market scrip offer for Niger-focused uranium explorer NGM Resources is a step closer after Deutsche Securities Australia agreed to sell its stake in NGM.
Deutsche began acquiring shares in NGM in July, one day after Paladin announced it intended to make the takeover offer for all NGM shares that it didn't already own.
Deutsche acquired 10.7 per cent of NGM shares, which Paladin said was a technical breach of one of the conditions its offer.
Today in a statement to the Australian Securities Exchange Paladin said Deutsche had agreed to sell more than 19.99 million shares comprising one fully paid ordinary Paladin share for every 23.9 fully paid ordinary NGM shares.
As at close of business yesterday, Paladin's voting power in NGM was 47.44 per cent.
See company statement below:
Paladin is pleased to note that Deutsche Securities Australia Limited (Deutsche) has accepted the Offer in respect of 19,995,330 NGM shares that Deutsche holds.
In addition, NGM's directors have accepted the Offer in respect of their existing individual holdings of ordinary shares.
As at close of business yesterday, Paladin's voting power in NGM was 47.44%.
The previous acquisition by Deutsche of voting power of more than 10% in NGM, resulted in the nonfulfilment of one of the Offer conditions. Paladin is pleased to advise that in light of Deutsche's acceptance into the Offer it will not rely on the non-fulfilment of this particular condition (to the extent that it relates to Deutsche's previous acquisition).
The consideration under the Offer comprises one fully paid ordinary Paladin share for every 23.9 fully paid ordinary NGM shares. NGM's directors have unanimously recommended that NGM shareholders accept the Offer, in the absence of a superior offer. As noted above, they have accepted the Offer in respect of their own existing ordinary shareholdings.
Paladin encourages all NGM shareholders to accept the Offer as soon as possible and, in any event, prior to 5.00 pm (Perth time) on 8 October 2010.
