29th Sep 2015 08:21
LONDON (Alliance News) - Bushveld Minerals Ltd Tuesday said it has completed the takeover of Australian Securities Exchange-listed Lemur Resources Ltd.
The deal between the two companies stretches back to 2013, but a deal was not finalised until June 2015 when Lemur Resources recommended its shareholders accept Bushveld's takeover offer for the company "in absence of a superior proposal".
Prior to the takeover deal being recommended by Lemur, which called the offer "not fair" but "reasonable", Bushveld was already a substantial shareholder in the company with more than a 60% stake.
The takeover deal to acquire the 36.4% stake in Lemur it did not already hold, was priced at AUD0.06 per Lemur share, valuing Lemur at around AUD10.9 million.
On Tuesday, Bushveld said it will now proceed with the transfer of the remaining shares in Lemur to Bushveld, and the funds to satisfy the deal have been deposited in a Trust Account set up in Lemur's name, which was opened for the sole purpose of the acquisition. The cash consideration will be held in trust for each former Lemur shareholder pending the return of a claim form, it said.
Through the acquisition of Lemur, Bushveld said it has secured AUD12.0 million in cash, a large development thermal coal deposit in Madagascar, the Zaaiplaats tailings project, and the Brits vanadium project.
"Bushveld will fully consolidate Lemur into its group operations...This includes prioritising the Bushveld vanadium platform, while considering options to unlock value inherent to the wider portfolio of Bushveld's tin assets and the Imaloto coal project in Madagascar," said Bushveld.
Bushveld shares were down 6.5% to 3.46 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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