aqp ridge announcement well received in london

Londoners are even more optimistic than Australians about the proposed acquisition of Ridge by Aquarius Platinum. The share price in London apparently went up 13% there. On the ASX it only went up 6% today.

The following is from Bloomberg http://www.bloomberg.com/apps/news?pid=20601081&sid=a37VTYiWNX4k&refer=australia

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Aquarius Platinum Shares Surge on Fund Raising Plans (Update2)

By Carli Lourens and Rebecca Keenan

March 26 (Bloomberg) -- Aquarius Platinum Ltd., the fourth- biggest platinum producer in the world last year, rose the most in two months in London trading on plans to raise as much as $249 million from bond and share sales to buy Ridge Mining Plc.

The stock climbed 24 pence, or 13 percent, to close at 208 pence, taking this year’s gain to 19 percent. Earlier it rose as much as 24 percent. Ridge also jumped 24 percent to 64.5 pence.

Aquarius raised 83.4 million pounds ($121 million) through a placing of 46.3 million shares at 180 pence each. It said in a statement today a rights offer of 41.5 million shares was also fully underwritten, with proceeds of 47.7 million pounds. The company may also offer a convertible bond.

The fundraising “should put the company balance sheet in a strong position with net cash,” London-based Liberum Capital said in a note today. “We see this as a de-risking event.”

Aquarius may offer one share for every 2.75 Ridge shares, valuing Ridge at 63 million pounds. Platinum producers in South Africa, the source of almost 80 percent of world supply, may combine this year, Stuart Murray, Aquarius’s chief executive officer, said last month. Demand for the metal, used in auto pollution-control devices and jewelry, plunged last year as the global economic slump eroded vehicle sales.

“Aquarius is being prudent in raising money to help service its current debt of $158 million and to help” its offer for Ridge, Evolution Securities said in a research report.

The share sale is managed by Merrill Lynch & Co. and Euroz Securities Ltd., and the convertible bond sale is managed and underwritten by Rand Merchant Bank.

To contact the reporters on this story: Rebecca Keenan in Melbourne at [email protected]; Carli Lourens in Johannesburg at [email protected]

Last Updated: March 26, 2009 13:28 EDT