The board of Australian manganese and chrome producer Consolidated Minerals (CNM-L, CSM-A) has recommended a revised offer by a group of investors led by investment fund Pallinghurst Investor to buy up shares at A$3.30.
The new offer is in response to a takeover offer for Consmin by Territory Resources (TTY-A), which had made several toe-in-the-water announcements in recent weeks. Territory came up with a definitive offer on July 17, bidding A$2 in cash plus 1.5 Territory shares for one Consmin. That valued Consmin at A$3.72 per share.
Territory made the bid with the support of Noble Group and DCM Decometal, two Hong Kong-based metal trading houses that are also significant clients and shareholders of Consmin. The houses are putting up the immediate cash requirement.
The offer came just in time to force cancellation of a Consmin shareholder meeting that would have considered an earlier arrangement scheme with Pallinghurst. Under that proposal, shareholders would have received a A$1.68 payout and two shares of a reorganized Consmin.
Consmin shares closed at A$3.46, while Territory shares were up A12 at A$1.15.
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