Vulcan offer falls through, but MC Mining still recommends not accepting Goldway deal

The JSE share price of triple-listed coal miner MC Mining…


The JSE share price of triple-listed coal miner MC Mining fell by nearly 16% on March 12, after the company announced that fellow coal miner Vulcan Resources would not proceed with a formal buyout offer to MC Mining shareholders.

MC Mining on March 8 announced that it had received a letter from Vulcan Resources outlining a nonbinding proposal to make an off-market cash takeover offer for all the shares in MC Mining at an indicative price of between A$0.17 and A$0.20 a share.

The proposed offer valued JSE-, Aim- and ASX-listed MC Mining at between A$69.34-million and A$81.58-million.

An independent board committee (IBC) established previously by MC Mining to assess a takeover offer from Goldway Capital Investment – a consortium of its biggest shareholders Senosi Group Investment Holdings and Dendocept – has reiterated its recommendation that shareholders not accept the A$0.16 a share all-cash offer from Goldway.

The IBC considers the Goldway offer to be “opportunistic” and says it does not provide an appropriate premium for control of MC Mining.

The committee has commissioned an independent expert’s report on the offer and plans to finalize that by March 18.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *