(Alliance News) - MC Mining Ltd on Friday advised its shareholders to take no action after it received a takeover offer from Goldway Capital Investments Ltd.
The Western Australia-based coal miner in South Africa owns Uitkomst Colliery, an operating metallurgical and thermal coal mine, and Makhado project, an exploration and evaluation asset.
MC Mining said it will respond with a target statement that will include an independent expert report and the independent board committee's recommendation regarding the offer.
Goldway, which is a special purpose vehicle incorporated in Hong Kong earlier Friday said that "the costs of remaining listed far outweigh the benefits for MCM shareholders".
"Despite being listed on three exchanges, MCM has been unable to secure funding from parties outside of the consortium" that it represents, the bidder said.
Goldway said the offer values MC Mining's capital at around AUD65.3 million, equating to GBP33.8 million or ZAR803 million. It has an enterprise value of around AUD75.5 million.
In December, MC Mining had received a revised takeover offer, which was first made by Senosi Group Investment Holdings Pty Ltd and Dendocept Pty Ltd in early November.
Late in December, Senosi and Dendocept indicated that they intended to acquire all shares that they do not own for a cash price of 16 Australian cents per share. Their offer is on behalf of shareholders with a 64% stake.
Friday's offer is also for 16 Australian cents per share, worth around 8.27 pence or ZAR1.97 and a premium to the closing price of 13 Australian cents of MCM's closing price on Thursday. MC Mining shares rose 5.7% to 7.00p each on Friday morning in London, while in Johannesburg, they surged 25% to ZAR1.88.
By Tom Budszus, Alliance News slot editor
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