Mineral Deposits bidder ERAMET still hopeful of shareholder support, despite target rejection
The Mineral Deposits [ASX: MDL] target statement released on Tuesday (22 May) that rejects ERAMET’s [EPA: ERA] AUD 1.46 (USD 1.10) cash per share offer has not deterred the bidder despite the independent report finding the offer neither fair nor reasonable and estimating fair value at AUD 2.04 - AUD 2.52 per share, said a source familiar with the situation.
Mineral Deposits shares have continued to trade through terms, closing 5.9% higher today at AUD 1.795.
The source noted Mineral Deposits is relying on wildly optimistic mineral sands forward prices, operating performance and therefore earnings numbers.
The source said that were shareholders not supportive of ERAMET's offer, they would not have sold their shares into the offer at AUD 1.46 per share and below that prior to the offer announcement.
Mineral Deposits shareholders are now no longer selling because ERAMET has placed a price floor, and shareholders think they can extract more, the source said, but their action of previously selling at AUD 1.46 per share when there was no bidder speaks to their intent.
The French group’s proposed offer is subject to a 50.01% minimum acceptance condition and has approval from Australia’s Foreign Investment Review Board (FIRB).
ERAMET has a 13.3% relevant interest in Mineral Deposits including from Ellerston which tendered its entire 7.9% stake towards the proposed offer in a pre-bid agreement disclosed on 27 April.
This news service has reported that Tim Robertson, managing director of Farjoy which holds 7.8% in Mineral Deposits, claims he has spoken to shareholders owning over 50% of the integrated mining company and that none plan to accept ERAMET’s offer.
As previously reported, this news service has spoken to five shareholders accounting for some 42% of the register, who described the offer as too low and not compelling.
The offer is scheduled to close on 21 June.
ERAMET and MDL would not comment beyond their statements.
Mineral Deposits shares have continued to trade through terms, closing 5.9% higher today at AUD 1.795.
The source noted Mineral Deposits is relying on wildly optimistic mineral sands forward prices, operating performance and therefore earnings numbers.
The source said that were shareholders not supportive of ERAMET's offer, they would not have sold their shares into the offer at AUD 1.46 per share and below that prior to the offer announcement.
Mineral Deposits shareholders are now no longer selling because ERAMET has placed a price floor, and shareholders think they can extract more, the source said, but their action of previously selling at AUD 1.46 per share when there was no bidder speaks to their intent.
The French group’s proposed offer is subject to a 50.01% minimum acceptance condition and has approval from Australia’s Foreign Investment Review Board (FIRB).
ERAMET has a 13.3% relevant interest in Mineral Deposits including from Ellerston which tendered its entire 7.9% stake towards the proposed offer in a pre-bid agreement disclosed on 27 April.
This news service has reported that Tim Robertson, managing director of Farjoy which holds 7.8% in Mineral Deposits, claims he has spoken to shareholders owning over 50% of the integrated mining company and that none plan to accept ERAMET’s offer.
As previously reported, this news service has spoken to five shareholders accounting for some 42% of the register, who described the offer as too low and not compelling.
The offer is scheduled to close on 21 June.
ERAMET and MDL would not comment beyond their statements.