HomeCentral AfricaTrans Hex board votes against takeover after company evaluation

Trans Hex board votes against takeover after company evaluation

The Trans Hex independent board appointed Snowden Mining Industry Consultants (Snowden) to provide appropriate external advice in the form of a fair and reasonable opinion after Cream Magenta, Metcap and RAC extended a mandatory cash offer for the company.

The offer grants the parties to acquire the entire issued ordinary share capital of the company, other than the issued ordinary shares already held by the offerors and the issued ordinary shares held as offer shares.

The offerors have offered to acquire all the offer shares in exchange for a cash offer consideration of 394 cents per offer share.

While on the lower end of the spectrum Snowden advises 345 cents per share, it recommends 800 cents per share as fair value and 1 287 cents per share as a high end value.

Having taken into account the opinion of Snowden as an independent expert regarding the offer, Trans Hex’s independent board believes the terms of the offer are not fair and not reasonable to shareholders and accordingly, recommends that shareholders do not accept the offer.