ERAMET SA has announced an unsolicited, off-market takeover bid for all of the shares in MDL for consideration of A$1.46 cash for every share.
For reasons that will be disclosed in its target’s statement, Mineral Deposits Limited (MDL) views the offer as highly opportunistic.
It takes advantage of sharply improving commodity prices and improved operational and financial performance of the TiZir joint venture.
In doing so, the offer denies the company’s shareholders the opportunity to realise what it considers to be the true value of their investment.
That ERAMET, a partially French government-owned corporation and trusted joint venture partner in TiZir, did not approach the company before announcing its offer and has elected to pursue a hostile transaction supports MDL’s view of the opportunistic nature of the offer.
The target’s statement will also set out the recommendations of the directors regarding the offer and their reasons for those recommendations.
Until MDL’s directors have issued their recommendations regarding the offer and MDL shareholders are in receipt of the target’s statement, the company’s shareholders are urged to TAKE NO ACTION in relation to ERAMET’s offer.
As the offer must remain open for at least one calendar month from when it opens, the company’s shareholders will have ample time to make a decision in respect of the offer after considering the target’s statement.
The company has appointed MinterEllison and Flagstaff Partners to advise in respect of the offer.