IMIC to acquire Afferro Mining 22 May 2013 | 07:53am StockMarketWire.com - Afferro Mining is to be acquired by International Mining & Infrastructure Corporation (IMIC).
The two companies have agreed terms inprinciple and Afferro intends to recommend acceptance to its shareholders, subject to the completion of relevant documentation including satisfactory final financing arrangements, and the receipt of a fairness opinion from its financial adviser as to its terms of the proposed offer.
Under the agreed terms, IMIC will offer 80p in cash for each share of Afferro plus a two year convertible loan note with a principal value of 40p.
This combination of cash and convertible loan notes, which values the current issued share capital of Afferro at approximately $190m million, and replaces the three options proposed in IMIC's announcement of last month.
The convertible loan notes will carry a coupon of 8%, which will be rolled up and paid at the end of the 24 month term. Upon maturity, the notes together with any accrued interest will be paid in either cash or converted to the equivalent value in IMIC shares at the time of conversion, at IMIC's discretion.
David Netherway, Chairman of Afferro, said: "We have developed a world class asset in the Nkout project, which, along with our other iron ore projects, is in a substantial new iron ore corridor running through Cameroon.
"It has been of the foremost importance for the Board of Afferro to come back to shareholders with a revised and simplified offer to best optimise their returns. The Board believes that the 120p per share proposal offers good value and the ability for further upside with the exposure to the strong relationships built by IMIC with the key consumer that is China."
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