The $361.5 million takeover bid by a Japanese company for CBH Resources Ltd is fair and square, that according to Grant Thornton Corporate Finance Pty Ltd, which further described the offer as more beneficial and superior in favour of CBH on its published findings on Monday.

Toho Zinc from Japan offered 24 cents for every share of CBH Resources, while a rival bid from Belgium's Nyrstar totalled to $310 million and sought to acquire $100 million worth of the mining company's convertible notes and all its ordinary shares would be valued 19.5 cents each.

Grant Thornton concluded that Toho's share offer is fair for the CBH shareholders, pointing out that "the cash consideration of $0.24 per CBH share is higher than our assessed valuation range of CBH shares on a controlling basis."

The industry expert said that the Japanese company's bid has been based on the end of a competitive process and in a fully informed market, as it added that CBH's current market worth should be between 19.5 cents to 23.9 cents per share, which is about 2.17 percent higher than its share prices offering of 23.5 cents as of 1235 AEST.

Grant Thornton said that Toho's offer was clearly higher than that of Nyrstar's as it observed that "it reasonable to expect that the increase of (the) CBH share price over the last five months can be attributed to the potential benefits arising from the Toho share offer and the previous proposals received from Toho and Nyrstar."

The industry analyst also said that along with a much better offering from Toho, CBH shareholders can very well have the security of being insulated from investment risks currently faced by the company.

Grant Thornton outlined the potential risks as the following: volatility in the commodities prices, the uncertainties in relation to the development of the Rasp and Panorama projects, mine development and ramp-up production at the Endeavour mine, production, operational risks, financing risks and currency volatility.

The company's Endeavour mine is located in north of Cobar in NSW while its Panorama project is in southeast of Portland Hedland in Western Australia. In June 2008, the underground development at the Rasp mining site in Broken Hill, New South Whales was put on hold following the onset of the global financial crisis and steep declines in commodity prices.