West Perth-based Sylvania Resources has increased its takeover offer for Great Australian Resources from a value of $6 million to nearly $9 million.
The announcement is below:
Sylvania Resources Limited (ASX: SLV, Sylvania) today announces that it has increased its takeover offer for all the ordinary shares in Great Australian Resources Limited (ASX: GAU, Great Australian Resources) to 1 Sylvania share for every 12 Great Australian Resources shares.
Sylvania's increased offer represents:
a premium of 68% based on the closing price of Sylvania (A$0.99) and Great Australian Resources (A$0.049) shares on ASX on 11 May 2009 (compared to a premium of approximately 12% previously);
a premium of 100% to the 30 day VWAP of Sylvania and Great Australian Resources shares on the ASX prior to the launch of the takeover offer on 11 May 2009;
an implied value of approximately A$0.125 per Great Australian Resources share and a premium of 119% based on the closing price of Sylvania and Great Australian Resources shares on ASX on 9 June 2009.
Total consideration payable by Sylvania under the increased offer, assuming 100% acceptance, would be approximately 8,873,854 Sylvania shares, equivalent to a value of approximately A$8.8 million based on the closing price of Sylvania shares on ASX on 11 May 2009.
The increased offer provides Great Australian Resources shareholders with further consideration on top of what was already a generous offer.
Great Australian Resources shareholders will have the opportunity to realise a premium for their shares, as well as retain long term exposure and upside in the development of Great Australian Resources' exploration projects through Sylvania.
Sylvania is in the process of preparing a formal Bidder's Statement and will lodge that
document with the ASX and ASIC in due course.