Sarah-Jane Tasker | October 05, 2009 Article from: The Australian
RMA Energy has recommended its shareholders accept a multi-million-dollar bid for control of the company by China's largest infrastructure group, despite an independent expert labelling it as "not fair".
China Railway Resources Group's local subsidiary CREC Resources has made a $14.8 million bid for 80 per cent of Perth's RMA Energy, its first venture into the Australian resources space.
The deal, which includes an offer of 6.5c a share, hinges on Queensland businessman Terry Byrt, who has a 42.9 per cent stake in the company.
In a statement issued last week to investors, RMA Energy said it "unanimously recommends" shareholders accept the offer, in the absence of a better proposal.
An independent expert recruited to analyse the CREC offer concluded it was not fair, because it was below the preferred value of 6.7c a share. But the offer was considered reasonable, according to the expert, because RMA shareholders would be in a better position should the deal proceed than if it fell over.
CREC, the third-largest construction company in the world, set up its Australian subsidiary about a year ago with a view to using it to target Australian acquisitions.
The RMA offer is open until October 16.
RMT Price at posting:
4.6¢ Sentiment: None Disclosure: Not Held
