Swiss mining group Xstrata plc has reduced the minimum acceptance level in its Jubilee Mines takeover offer from 90 per cent to 50 per cent, after struggling to win acceptances from Jubilee shareholders.
Swiss mining group Xstrata plc has reduced the minimum acceptance level in its Jubilee Mines NL takeover offer from 90 per cent to 50 per cent, after struggling to win acceptances from Jubilee shareholders.
Xstrata announced today that it only had a 16.5 per cent interest in Jubilee Mines, or 18.3 per cent including options on a fully diluted basis.
This mean that apart from its pre-bid agreement with Jubilee's executive chairman Kerry Harmanis and other shareholders who owned about 17.5 per cent, it has gained acceptances from very few shareholders.
An Xstrata announcement is pasted below:
Xstrata Nickel to declare its takeover offer for Jubilee Mines unconditional if its interest exceeds 50% by 6 December 2007
Xstrata Nickel Australia Pty Ltd, a wholly owed subsidiary of Xstrata plcx, announces that it intends to declare its takeover offer to acquire all of the shares in Jubilee Mines NL free of all conditions if it receives acceptances so that it has an interest in more than 50 per cent ( in aggregate number ) of Jubilee shares by 5.00pm (Sydney time) on Thursday, December 6, 2007.
Acceptances can be received under the offer and in addition via subsisting instructions under the Institutional Acceptance Facility described in Xstrata's Bidder's Statement dated November 9, 2007.
Ian Pearce, CEO of Xstrata Nickel said: "We believe our cash offer A$23 per share is very attractive to Jubilee shareholders. It remains our intention to facilitate an offer process that will deliver this certain cash value to Jubilee shareholders as quickly as possible. We also wish to minimize any period of uncertainty for Jubilee employees and operations."
"The Jubilee Board stated in its Target's Statement dated November 15, 2007 that no more favourable proposal from any other party has emerged following a confidential sale process involving several interested parties. No party has announced a superior offer for Jubilee since then."
"We are therefore willing to declare our offer unconditional under certain circumstances, in order to expedite the process."
Kerry Harmanis, Executive chairman of Jubilee said: "We support Xstrata's initiative to expedite the offer process and encourage Jubilee shareholders to accept the Xstrata offer. In the event that Xstrata achieves acceptances in excess of 50% by December6, 2007, and declares its offer to be unconditional, as stated in the Bidder's Statement, accepting shareholders will be paid five business days after the date the offer becomes unconditional."
Xstrata's interest in Jubilee as at close of business November 23, 2007 (including instructions under the Acceptance facility) is 16.5% (18.3% including options on a fully diluted basis). This interest includes shares owned by Kerry Harmanis, Executive chairman of Jubilee, and certain other shareholders including the other directors and senior management of Jubilee, who have agreed to sell all their Jubilee shares to Xstrata and no other party for the offer price of A$23 per share.
Xstrata also intends to pay handling fees to brokers in respect of valid acceptances received from Jubilee retail shareholders. The full term of the broker handling fees will be announced in the next few days.
