The many twists and turns in the takeover battle for diversified mining company Consolidated Minerals Ltd has started to rival the convoluted tussle for control of struggling winemaker Evans & Tate Ltd.
The many twists and turns in the takeover battle for diversified mining company Consolidated Minerals Ltd has started to rival the convoluted tussle for control of struggling winemaker Evans & Tate Ltd.
The long-running fights for control of ConsMin and E&T have added to a busy period for Western Australian takeovers.
The red hot uranium sector has featured prominently, with Nova Energy Ltd becoming the third Perth-based uranium explorer to be acquired this year, joining Summit Resources Ltd and OmegaCorp Ltd.
The list of potential WA takeover targets has continued to grow and now includes Tap Oil Ltd, scaffolding supplier PCH Group Ltd, drilling services company Ausdrill Ltd and investment scheme manager Great Southern Ltd.
The ConsMin takeover battle has taken an unexpected direction after little-known Ukrainian group Privat acquired a 13.5 per cent shareholding.
This forced Territory Resources Ltd, chaired by former ConsMin managing director Michael Kiernan, to delay the planned announcement of a new takeover bid at Kalgoorlie’s Diggers and Dealers forum this week.
The ConsMin board has recommended that shareholders accept a $752 million takeover offer from Brian Gilbertson’s Pallinghurst consortium.
Pallinghurst’s offer of $3.30 cash per share is well above its initial cash-and-scrip offer, announced in February, of $2.28 per share.
Territory responded last month with a competing cash-and-scrip offer that it said was worth $3.65 per share.
However its offer has foundered because of uncertainty about the value of its scrip.
Territory’s goal is to reach a 90 per cent stake, and is therefore dependent on the support of Privat, which purchases manganese from ConsMin.
In contracts, Pallinghurst’s goal is to reach a 60 per cent shareholding and does not depend on Privat’s support.
All of the players in the ConsMin saga are seeking meetings with Privat to ascertain its intentions, including Mr Kiernan.
“I’m travelling next week to meet with the Ukraines [sic],” Mr Kiernan said this week.
“We had intended to announce a revised bid today, we were all locked and loaded, the funding was in place, everybody was happy…but the Ukraines entering into the fray has certainly put in a new dimension.”
The ConsMin takeover has hotted up just as the E&T takeover moves toward what is likely to be an agreed deal with Peter Fogarty’s Pendulum Capital Pty Ltd and family owned McWilliam’s Wines Pty Ltd.
The E&T board has signed a complex restructuring agreement under which ANZ Banking Group Ltd, Pendulum and McWilliams emerged as its main shareholders.
This followed the rejection of a competing offer from US group Yarraman and the withdrawal of Ferngrove Vineyards from the bidding.
In the uranium sector, Oxiana will become the major shareholder in a substantial new exploration stock following the agreed scrip merger of Toro Energy Ltd and Nova Energy.
Takeover speculation continues around several Perth companies that have advised the market they are in discussions with potential bidders.
PCH is in negotiations with international competitor Cape plc while Ausdrill and Great Southern are in discussions with unnamed suitors.
Contractor Macmahon Holdings Ltd has become a possible target after Leighton Holdings Ltd acquired an 11.5 per cent stake.
Similarly, Tap Oil could be in play after a private consortium that includes several former Alinta executives and The Wyllie Group took a shareholding.
