Meijin Energy offers A$43.4 million for Australia's DMC Mining
DMC Mining (ASX: DMM) has received a pre-takeover offer approach from Meijin Energy Group Limited to acquire all the ordinary shares in DMC for $0.50 per share in cash via an intended off-market takeover offer.
DMC Mining last traded at $0.50 before moving into a trading halt pending today's announcement.
Cape Lambert Resources (ASX: CFE) has previously made an offer of $0.46 per DMC share.
DMC Mining is an Australian listed company and its principal asset - currently held through its 80% owned subsidiary - is the Mayoko Iron Ore Project in the Republic of Congo (ROC).
Mayoko Project has an exploration target size of 0.9 – 1.3 billion tonnes1 of dominantly itabirite iron mineralisation.
The approach is via a conditional takeover bid implementation deed with Meijin Energy Group.
The Meijin Offer, if made on satisfaction of certain preconditions, will value DMC at approximately A$43.4 million.
DMC’s managing director, David Sumich said, “the Meijin Offer, if made, is a compelling offer for DMC shareholders, given it is priced at a premium of 8.7% to the Cape Lambert Offer”.
The obligation to make the Meijin Offer is subject to the following preconditions:
- completion of due diligence by Meijin on DMC;
- the entering
into a pre-bid acceptance agreement with an entity associated with DMC’s
Managing Director, David Sumich; and
- no "prescribed occurrences"
occurring before the date of satisfaction of the preconditions noted
above.
The preconditions need to be satisfied or waived by 5.00pm Perth time on 7 May 2010. If the preconditions are satisfied or waived, Meijin will make the off-market takeover bid. If the preconditions are not satisfied or waived, the Meijin Offer will not be made.
The Meijin Offer will be subject to a number of conditions, being a minimum acceptance condition of 48,700,000 shares.
A mutual break fee of A$150,000 is payable.
DMC’s directors have agreed they will unanimously recommend that DMC shareholders accept the Meijin Offer if made, in the absence of a superior proposal. DMC’s directors have also indicated that they intend to accept the Meijin Offer, if made, in respect of their own shareholdings, in the absence of a superior proposal.
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