PUBLISHED: 3 hours 57 MINUTES AGO | UPDATE: 3 hours 26 MINUTES AGO
Chinese private equity fund Cathay Fortune Corporation has come back with a formal offer to take over Discovery Metals at the same $830 million price that has already been rejected by the target’s board.
CFC and partner China-Africa Development Fund announced on Tuesday an off-market takeover bid for the Botswana-focused silver and copper miner at $1.70 per share in cash. CFC already owns 13.78 per cent of Discovery.
CFC founder, Yong Yu, said the decision by Discovery’s board to refuse access to due diligence and engage in takeover talks “without any reasonable basis,” had prompted the bidding partners to bypass the board and present the offer directly to shareholders.
The offer represents “compelling and certain value at an attractive premium at a time when there is significant uncertainty over the current and expected cash costs and mine expansion plans” of Discovery’s Boseto copper project, Mr Yu said.
The Australian Financial Rev
TGS Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
