12/06/2009 - 11:24

SA Metals recommend $30m takeover offer

12/06/2009 - 11:24

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Balcatta-based SA Metals, formerly Pan Palladium, has recommended shareholders accept Sylvania's $30 million all-scrip takeover offer.

Balcatta-based SA Metals, formerly Pan Palladium, has recommended shareholders accept Sylvania's $30 million all-scrip takeover offer.

 

The announcement is below:

 

 

The Board of SA Metals Limited (SA Metals) is pleased to announce that it is unanimously recommending Sylvania Resources Limited's (Sylvania) all scrip offer of 1 Sylvania share for every 10 SA Metals shares (Offer), in the absence of a superior proposal.

The Offer equates to a value of approximately A$0.099 per SA Metals share, and represents a premium of 120% based on the closing price of Sylvania and SA Metals shares on ASX on 11 May 2009.

The Board has determined the Sylvania Offer to be in the best interests of all SA Metals, in the absence of a superior proposal after considering numerous factors including:

o the premium of the Sylvania Offer;

o the Offer gives you the opportunity to become a shareholder in one of the world's lowest cost PGM producers, with strong cash flow;

o Sylvania has a proven management team with the technical and commercial expertise to progress the development of SA Metals' projects; and

o Sylvania's current market capitalisation in the vicinity of AUD $282 million and AUD $32 million in cash reserves.

Sylvania and SA Metals have agreed to send the Bidder's Statement and Target's Statement to SA Metals shareholders at the same time. It is expected that these documents will be sent to SA Metals shareholders in the next month.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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