03 APRIL 2014www.miningweekly.com
MetroCoal says offer price for Cape Alumina final
Edited by : AL CIRCLE
1 min read
As Cape Alumina advises its shareholders to reject a 0.6c-a-share takeover offer, suitor MetroCoal warned on Wednesday that it would not increase its bidding price.
Cape Alumina said the price was significantly lower than share prices prior to the offer being made, and that it failed to attribute value to the company’s bauxite projects.
Cape Alumina directors labelled the offer “opportunistic” and warned shareholders that if the offer were accepted, no superior offer could be accepted, if indeed such emerged.
MetroCoal currently holds a 46.04% shareholding in Cape Alumina after shareholders Resource Capital Fund III and Resource Capital Fund IV accepted a takeover offer. The offer was expected to expire on May 5, but could be extended, MetroCoal said.
MetroCoal has previously said that by acquiring Cape Alumina, the company could expose its shareholders to the diversified bulk commodities of bauxite and thermal coal, for a relatively small capital outlay.
Cape Alumina was currently looking to develop its Pisolite Hills project, in Queensland.
Cape Alumina said the price was significantly lower than share prices prior to the offer being made, and that it failed to attribute value to the company’s bauxite projects.
Cape Alumina directors labelled the offer “opportunistic” and warned shareholders that if the offer were accepted, no superior offer could be accepted, if indeed such emerged.
MetroCoal currently holds a 46.04% shareholding in Cape Alumina after shareholders Resource Capital Fund III and Resource Capital Fund IV accepted a takeover offer. The offer was expected to expire on May 5, but could be extended, MetroCoal said.
MetroCoal has previously said that by acquiring Cape Alumina, the company could expose its shareholders to the diversified bulk commodities of bauxite and thermal coal, for a relatively small capital outlay.
Cape Alumina was currently looking to develop its Pisolite Hills project, in Queensland.
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