$856 mn bid unfair: Discovery Metals
- Spot-fixing: Chandila was in touch with four sets of bookies, says Delhi Police
- Chinese Premier Li Keqiang arrives, to hold talks with PM on boundary, water issues
- IPL 2013: Delhi Daredevils crash to defeat, finish last
- Jaganmohan's wife attacks CBI, accuses it of working at Congress behest
- Blast accused death: UP govt seeks CBI probe, FIR against 42 persons
Australia's Discovery Metals told its shareholders it saw strong prospects at its key copper project in Botswana, and spelled out why it thinks they should reject a A$824 million ($856 million) offer from a Chinese bidder.
Cathay Fortune Corp, a private equity firm founded by Chinese billionaire Yu Yong, and the China-Africa Development fund went hostile with a A$1.70 a share offer for Discovery in October after the board rejected an initial approach.
The offer is opportunistically timed to exploit a period of temporary share price weakness, Discovery said in its formal response to the bid from CF Investments on Friday.
CF Investments is 75 percent owned by Yu's Cathay Fortune Corp and 25 percent by China-Africa Development Fund.
CF Investments, which already owns 13.7 percent of Discovery through Cathay Fortune, is targeting the firm for its Boseto project in Botswana, which has attracted more than $10 billion in copper takeovers in the past two years.
Discovery said its expansion plans at Boseto and future growth options meant it was well positioned to benefit from a favourable copper market outlook.
An independent report valued the company at A$1.74-A$2.11 per share, Discovery added.
CF has set a minimum acceptance condition of 51 percent, which means it only needs just over 37 percent support to go ahead with the deal.
Discovery's shares last traded at A$1.685, indicating investors expect the deal to go ahead. The stock has rallied from a low of A$0.88 cents in September, but traded as high A$1.815 in April.
- Former Ranji player among 3 more held
- Rajasthan Royals to file FIR against tainted trio
- If found guilty, BCCI to ask ICC to erase Sreesanth records
- Top cops among 42 named in death of blast accused
- PM takes tough line on incursion issue
- Security forces blame Maoists, villagers say CoBRA man was killed in ‘friendly fire’