Ramelius progresses $200m Musgrave takeover

Ramelius Resources has inched closer to taking over Musgrave Minerals after receiving acceptances of more than 91 per cent to move on a compulsory acquisition.  

The goldminer told the market it now intends to exercise its right to compulsorily acquire the remaining 8.63 per cent of shares in Musgrave under the same terms outlined in July.

Ramelius bid implementation agreement offers Musgrave shareholders one Ramelius share for every 4.21 shares, plus 4 cents cash per Musgrave share.

The proposal prices Musgrave shares at about 34 cents per share and implies a $201 million undiluted equity value for Musgrave overall.

Former fellow bidder Westgold Resources subsequently exited the contest to acquire Musgrave, after announcing it didn’t intend to improve its $177 million merger proposal.

That announcement followed Musgrave’s target statement telling its shareholders to reject Westgold’s offer after unanimously recommending Ramelius bid.

Ramelius has lodged a notice of compulsory acquisition with ASIC, which will be sent out to the remaining shareholders who have not accepted the takeover offer.