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Miner makes K2.5bn offer for PanAust shares

A CHINESE miner has offered to buy off PanAust shares at a value of almost A$1.2 billion (K2.5bn).
Guangdong Rising Assets Management (GRAM), which owns 24.26 per cent interest in PanAust, recently made a takeover offer for the rest of the Australian miner’s shares in a bid to increase its ownership of PanAust, a deal in which PanAust has agreed to.
Following discussions last Friday, PanAust agreed to a takeover offer of A$1.85 (K3.99) per share which was an 8 per cent increase from GRAM’s previous offer of A$1.71 (K3.68).
PanAust stated that its board of independent directors had now unanimously recommended the takeover offer to shareholders as it was the only offer available with no superior proposals emerging.
Chairman Garry Hounsell said the unanimous recommendation to accept GRAM’s revised offer was made following careful consideration by the board of all options to maximise value for PanAust shareholders.
“GRAM has been a supportive shareholder since 2009 and it is encouraging that through the offer they have endorsed the company’s strategy as well as the management and employees who ultimately are responsible for making PanAust the high quality company it is today.
“GRAM’s revised offer enables our shareholders to realise a compelling premium for their shares and provides certain cash value.
“The PanAust Laos business in Asia continues to perform strongly and the Frieda River project is a substantial long term growth asset for the company. The National
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