Panoramic bid for Magma now unconditional

Panoramic Resources has waived the last remaining condition on its $40 million takeover bid for Magma Metals, after increasing its stake in the target to just over 44 per cent.

Panoramic said it would increase its offer to one panoramic share for every seven Magma shares if it acquires more than 50 per cent of the company.

At close of trade yesterday, Panoramic owned 44.56 per cent of all Magma shares on issue.

The increased offer would be 21.4 per cent higher than Panoramic's previous offer, giving Magma shares an implied value of 14 cents each.

“By declaring our offer unconditional, we are providing Magma shareholders with the certainty that should they accept the offer, they will receive Panoramic shares as consideration,” managing director Peter Harold said.

“In our view, there should now be nothing stopping shareholders from following the lead of major Magma shareholders accepting Panoramic’s offer.”

The bid is scheduled to close on May 17.

At 10:00AM WST, Panoramic stocks were up one cent, trading at 98.5 cents, while Magma shares were steady at 13 cents.