26/08/2013 - 11:35

Xceed receives $20m takeover bid

26/08/2013 - 11:35

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South Africa’s Keaton Energy Holdings has made a $20 million all-cash takeover bid for Perth-based coal explorer Xceed Resources.

Xceed receives $20m takeover bid

South Africa’s Keaton Energy Holdings has made a $20 million all-cash takeover bid for Perth-based coal explorer Xceed Resources.

Xceed announced today that Keaton had offered 0.14 cents per share, conditional on receiving the target’s shareholder approval.

A meeting to consider the scheme of arrangement is scheduled for December 2.

The offer is a 35 per cent premium to Xceed’s volume weighted average share price of 10.3 cents per share over the past 30 days.

Xceed managing director Ian Culbert said the company’s belief in its Moadbsvelden thermal coal project was validated by the all-cash offer from a local operator.

“The board also recognises that the outlook for acceptable shareholder returns for many junior mining companies, Xceed included, as expressed by their share prices, continues to remain subdued and this all cash offer at a premium presents a rare opportunity for our shareholders to realise their investment,” Mr Culbert said in a statement.

RSM Bird Cameron will provide an independent expert's report for Xceed shareholders.

Xceed shares had gained 18.8 per cent on the ASX this morning, and at 11:20AM, WST, were trading at 13 cents.

 

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