Colin Jacoby -- MINING NEWS -- Friday, 4 December 2009
THE Takeovers Panel has backed up the Australian Securities and Investment Commission’s decision not to waive the 50.1% minimum acceptance condition regarding Lion-Asia Resources’ all-cash bid for Polaris Metals.
Following the Takeover Panel’s decision, Lion-Asia has announced it will free the offer from all conditions except for the minimum acceptance condition.
Lion-Asia said that in order to help satisfy the minimum acceptance condition, it has proposed to set up an acceptance facility for all Polaris shareholders so that they could indicate their intention to accept the Lion share offer.
“Once the level of acceptances in the acceptance facility is sufficient to satisfy the minimum acceptance condition, the acceptances will be processed and the minimum acceptance condition satisfied,” Lion-Asia said.
“At this time, the Lion offer will be wholly unconditional.”
Lion-Asia’s offer is scheduled to close on December 29.
The news comes after ASIC decided last month not to remove or allow the condition to be waived.
At the time, Lion-Asia said it was “disappointed” with ASIC’s decision and lodged an application with the Takeovers Panel to review the decision.
Lion-Asia is offering an all-cash bid of 74c for Polaris, which values Polaris at around $131 million.
However, the Polaris board has recommended a rival bid from Mineral Resources of one Mineral Resources share for every 10 Polaris shares, and A10c cash for each Polaris share, valuing each Polaris share at 81.5c or around $144 million.
Lion-Asia is associated with Lion Diversified Holdings Berhad, which held a 26% stake in Polaris before the bidding war began.
Shares in Polaris have gained 1c to 77c in morning trade.
POL Price at posting:
77.0¢ Sentiment: None Disclosure: Not Held
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