re: Ann: DMM: Response to Announcement by Mei... DMC disputes...

re: Ann: DMM: Response to Announcement by Mei...
DMC disputes Meijin's right to abandon bid
KATE EMERY, The West Australian June 23, 2010, 9:36 am


DMC Mining is in dispute with would-be suitor Meijin Energy Group over whether the Chinese group must proceed with a $46 million offer or has the right to walk away.

Meijin said last night it would not proceed with its 53-a-share offer for DMC, after DMC directors agreed to sell their collective stake, representing about 9 to 10 per cent of the company, to rival bidder Cape Lambert Resources.

Explaining its reasoning Meijin, whose offer is conditional on gaining control of DMC, said it believed that Cape Lambert's decision on June 1 to equal the terms of its offer represented a change of circumstances, which would allow it to abandon its bid.

However, DMC said today it did not believe the revised Cape Lambert offer amounted to a change of circumstances as defined by the Corporations Act.

"As such, the directors believe that Meijin is not entitled to rely on that section (of the Corporations Act) to determine not to proceed to make the revised Meijin offer," the company said in a statement.

"The directors believe that Mejin must proceed to make the revised Mejin offer in accordance with section 631(1) of the Act, or obtain ASIC relief not to proceed."
DMC shares were unchanged at 52 cents at 9.35am.
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