The Saudi titanium producer, Cristal Titanium, looks set to take over Australian mineral sands miner Bemax, after its 32 cents a share offer was accepted by Bemax's board. The bid values Bemax at $A300 million and is a 45% premium to Bemax's closing price on Friday.
Cristal already owned more than a third of Bemax and was looking to secure full ownership of the world's sixth biggest supplier of rutile, a key ingredient in titanium production.
Bemax said it had appointed Lonergan Edwards to prepare a report as to the fairness and reasonableness of Cristal’s offer.
Cristal presently holds a 34.54% stake in Bemax, and made the offer through its wholly owned subsidiary Cristal Australia Pty Ltd.
The directors of Bemax had advised shareholders that early acceptance of the offer would not entitle them to be paid earlier, “Bemax shareholders will only be entitled to receive cash for their Bemax shares once the offer becomes unconditional,” the company said in a statement, “Each of the Bemax directors intends to accept the Cristal offer, in the absence of a superior proposal.”
Bemax said it would now commence preparation of its target statement, to be provided alongside the report by Lonergan Edwards.
The Cristal offer is subject to a number of conditions, including a 90 % minimum acceptance
Source: ABC, Egoli
Minerals and Metals at www.minerals-and-metals.com
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