Panoramic a step closer to Magma takeover

Panoramic Resources has moved closer to completing its hostile $40 million takeover of Magma Metals, with the suitor’s third-largest shareholder moving to accept the bid.

Panoramic announced today that Computershare Investor Services had received acceptance instructions for 28 per cent of the issued Magma shares, including Pala Metals’ 7.18 per cent stake in the company.

The Perth-based miner said it and its associates now held a relevant interest in 41.75 per cent of Magma's shares.

If Panoramic obtains an interest exceeding 50 per cent of the Magma shares on issue, its offer will increase to one Panoramic share for every seven Magma shares, and it will waive a 90 per cent minimum acceptance condition.

Panoramic’s initial offer was two Panoramic shares for every 17 Magma shares.

“We are pleased that Magma’s third-largest shareholder, Pala, has accepted into the IAF,” Panoramic managing director Peter Harold said.

“This means that Magma’s largest and third-largest shareholders have now accepted the Panoramic offer.

“We would encourage all of magma’s shareholders to follow the lead of Pala and accept Panoramic’s offer as soon as possible.”

Magma Metals’ largest shareholder, Anglo Pacific Group, accepted Panoramic’s offer earlier this week, despite last week’s announcement from Magma that recommended rejection of the offer.

AT 1:30PM, WST, Panoramic stocks had slipped by 3 per cent, trading at $1.01.