DMC board gives in to takeover bid of Cape Lambert
DMC Mining Ltd's directors said today that they are inclined to accept the offer of Cape Lambert Resources Ltd to acquire their stocks and options at 53 cents per shares, for a total takeover bid of $46.04 million.
According to its released statement, DMC declined to recommend company shareholders on the revised rival takeover proposals from Meijin Energy Group of China and from Cape Lambert itself since no final statements were sent by the concerned companies.
Cape Lambert had earlier pushed an unconditional offer of 53 cents per share of DMC stocks, which expires at 1900 AEST on Friday, while Meijin offered a conditional 53 cents per share with a bid for a controlling interest in DMC.
On Tuesday, however, DMC informed the Australian Stock Exchange (ASX) that its board of directors have deemed the revised Cape Lambert offer as superior to that of the revised Meijin offer.
The company said that in the absence of a superior offer and after considering both companies' personal circumstances, "the DMC directors intend to accept the revised Cape Lambert offer in respect of shares they hold or which result from the exercise of options, but only towards the end of the offer period."
DMC is currently based in Perth and focused in exploring the Mayoko iron ore project located in the Republic of Congo.
As of 1045 AEST, both Cape Lambert and DMC shares were trading down with Cape Lambert trading at 44 cents, shedding 0.5 cents or 1.12 percent while DMC trading at 52.5 cents, losing 1.5 cents or 2.78 percent.