The marriage between Russia's state-owned ARMZ Uranium Holding Co and Perth-based Mantra Resources is back on, after the companies agreed on a revised takeover bid that values Mantra at $1.02 billion.
The marriage between Russia's state-owned ARMZ Uranium Holding Co and Perth-based Mantra Resources is back on, after the companies agreed on a revised takeover bid that values Mantra at $1.02 billion.
The marriage between Russia's state-owned ARMZ Uranium Holding Co and Perth-based Mantra Resources is back on, after the companies agreed on a revised takeover bid that values Mantra at $1.02 billion.
Last week, ARMZ withdrew its $1.1 billion offer for Mantra, saying that the nuclear catastrophe unfolding at Japan's Fukishima nuclear power plant was likely to have a "material adverse effect" on Mantra's financial position and operations.
Africa-focused Mantra and ARMZ first announced a scheme implementation agreement (SIA) on December 15, where Mantra backed ARMZ's offer of $8.00 per share for the target.
Mantra told the ASX today that its directors had unanimously agreed to a revised SIA for ARMZ to acquire all of Mantra's shares.
The revised agreement, which is not subject to any material adverse change conditions, would see Mantra shareholders receive $6.87 in cash and a $0.15 dividend for every Mantra share they hold.
Mantra said the offer represented a 32.7 per cent premium to Mantra's closing share price of $5.29 from March 18, and a 14.4 per cent premium to Mantra's volume weighted average price of $6.14 over the period since the disaster in Japan occurred.
"After taking into consideration the current global equity market conditions and increased uncertainty for the uranium sector, other potential options available to the company and the advice of its financial and legal advisers, the Mantra Board has concluded that the Revised Transaction is in the best interests of Mantra shareholders," Mantra said in a statement to the ASX.
"The total cash payments of A$7.02 allows Mantra shareholders to realise value for their Mantra shares in the near term and, in the view of the Mantra Board, is compelling when taking into consideration the increased level of project development risk and uranium sector risk.
"In addition, there is a greater level of certainty with respect to the revised transaction being completed, due to the reduced conditionality of the deal including removal of the material adverse change clauses."
After watching its stock drop 27 per cent last week on the news the takeover bid was scuttled, investors have jumped back on Mantra, and at 11:04AM (WST) it was up 26 per cent to trade at $6.60.