Mineral Resources Ltd (MRL) has increased its takeover offer to Polaris Metals NL shareholders.
Mineral Resources will now offer one MRL share for every 10 Polaris shares and five cents cash for every one Polaris share, the company said in a statement on Wednesday.
"MRL's increased share offer represents a premium of 149 per cent to the 30 cents closing price of Polaris Shares on August 14, 2009," the company said.
The figure was based on Mineral Resources' closing share price of $6.97 on Tuesday, November 10.
August 14, the announcement date, was the trading day prior to the announcement of the original share offer.
The original share offer was for one Mineral Resources share for every 12.5 Polaris shares, as well as a separate offer made in respect of all Polaris options on issue.
The share offer and option offer would now be unconditional, Mineral Resources said.
"The increased share offer also represents a substantial premium to the trading prices of Polaris Shares across a wide range of other time periods prior to the announcement date," Mineral Resources said.
"The MRL board recognises that the Polaris shareholders, in accepting the MRL improved Share Offer, will retain their exposure to Polaris assets and gain exposure to Mineral Resources substantial and profitable portfolio of diverse mining services, iron ore and manganese operations."
The Polaris board had recommended its shareholders accept the original offer and an independent expert commissioned by the company declared the offer "fair and reasonable".
But on October 5, another bidder, Singapore-based Lion Asia Resources Pte Ltd, announced its intention to make an off-market all cash offer to acquire all shares in Polaris for $0.60 a share.
POL Price at posting:
71.5¢ Sentiment: Buy Disclosure: Held
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