“We have always viewed Orbis to be a high potential takeover target due to its size, economics and discounted valuation,” Tara Hassan of Haywood Securities writes in a research note. “Given the quality of the project and the below-average implied valuation metrics we expect that Semafo will have to sweeten its bid or face competition from other interested parties."
Other companies that might be interested in Orbis, Hasan says, include Nevsun (TSX: NSU; NYSE-Arca: NSU); Iamgold (TSX: IMG; NYSE: IMG); Endeavour Mining (TSX: EDV; US-OTC: EDVMF); B2Gold (TSX: BTO; NYSE: BTG); and Teranga Gold (TSX:TGZ)
Semafo said that despite its best efforts to communicate with Orbis, and several meetings held between the two parties in Brisbane in late September, it felt it necessary to issue the news release Monday given Orbis' manner of response so far.
The company plans to continue to seek discussions with Orbis' board to agree on an all-cash offer, prior to the scheduled meeting on October 24. Semafo said it would also seek to have talks with Orbis shareholders toward this goal.
