CBH Backs Toho Bid

Independent Directors Unanimously Back Bid

Independent directors at Australia’s CBH Resources' have unanimously backed Japan's Toho Zinc's friendly takeover offer for the zinc, lead and silver miner

CBH said in a statement Toho was offering 24 cents a share cash and $1000 cash per CBH convertible note. The offer, which already owns 24.1 per cent of CBH, was above an independent expert's valuation range of 18.7-23.2 cents a share.

It said the offer was subject to 90 per cent shareholder approval.

"This offer from CBH's major shareholder, Toho, is very attractive for CBH shareholders, particularly when compared to previous proposals received recently by the company," Managing Director Stephen Dennis said.

Toho said the offer valued CBH's ordinary equity at $262.7 million.

CBH has also been the target of Belgian’s Nyrstar, which has offered 19.5 cents a share and $1000 for each convertible note.

Toho Raises CBH Offer

New offer is 20 per cent higher

Japan’s Toho Zinc had increased it offer for Australia’s CBH Resources Ltd by 20 per cent.

Toho, which has a 24 per cent stake in CBH, is now offering 30c a share, up from an earlier bid of 25c.

Toho intends to raise its holding to 49.9 percent, the maximum level permitted without taking control.

CBH is the subject of a two-way takeover tussle with Belgium’s Nyrstar offering 19.5c a share last week.

CBH said that its directors will meet to decide whether to consider the latest proposal. Shareholders are due to meet on 28 April to discuss the takeover bids.
Shares in CBH were up 13 per cent at 21.5c a share.

Nyrstar Makes Fresh Offer For CBH Resources

New Offer At 19.5c a share

Belgium’s Nyrstar, the world’s largest zinc miner, has made an offer of 19.5c a share for Australian zinc miner, CBH Resources. Nyrstar has also offered $1000 per CBH convertible loan note.

CBH had previously recommended a joint venture deal and bid for part of the company from its largest shareholder Japan's Toho Zinc.

The Nyrstar proposal is subject to limited due diligence, which has now commenced, and on shareholders not approving the Toho deal at a meeting on April 28.

Last month CBH recommended shareholders accept a proposal to sell stock and bonds to Toho over a previous Nyrstar bid worth A$213 million.

CBH shares ended the day at 18.5c.

CBH Recommends Toho Bid

Australian zinc and lead miner CBH Resources is recommending a revised joint venture deal and bid for part of the company from its largest shareholder Toho Zinc Japan.

The move follows a suspension of the company’s shares after Toho unveiled a rival offer to a $290 million bid from Belgium’s Nyrstar.

CBH said it preferred the Toho proposal as Nyrstar's bid was conditional on acquiring all CBH's convertible notes and was also superior in terms of de-leveraging the company. Toho had earlier advised CBH that it would not support the Nyrstar bid as CBH’s major shareholder with a 23 per cent stake. It also holds just over 50 per cent of outstanding loan notes.

The Toho deal also includes a sale of 50 per cent of the Rasp zinc project at Broken Hill for $57.5m, to a joint venture between the two parties for the ownership and development of the mine.

Toho will make a partial takeover offer for up to 49.9 per cent in CBH at 25 cents a share valuing Toho’s offer for the shares it does not already own at $76 million. The offer compares with Nyrstar's revised offer of 19.5c for the whole of the company.

"Toho's revised proposal will provide CBH shareholders with the best of both worlds," CBH managing director Stephen Dennis.

"Shareholders will be able to receive significant near term gains on a portion of their CBH shares, and they will also have the opportunity to participate in the future growth of the company through the development of the Rasp project and the planned increase in production at the Endeavor Mine.

"The de-levering of the company, along with Toho's undertaking to support CBH in financing the Rasp Project, will also ensure that this important new mine is brought quickly into production."

CBH Resources Receives Alternative To Nyrstar Bid

Australian lead and zinc miner CBH Resources halted trades in its shares on Tuesday after receiving an alternative to the takeover offer on the table from Belgium's Nyrstar.

The offer is believed to have come from CBH's largest shareholder, the Japanese company, Toho Zinc, in which Toho will take a maximum 49.9 per cent stake in CBH.

The company has set up a committee of independent directors to weigh up the merits of both the Nyrstar and Toho proposals.

The company expects to make an announcement before the Australian Stock Exchange opens on Thursday.

Nyrstar has offered $0.195 per CBH share and $750 per convertible note in a bid that values all shares and convertible notes at about $290 million. CBH rebuffes a previous Nyrstar bid at the beginning of the year.

Nyrstar Wants Answers On CBH Bid

Australian miner, CBH Resources, is to decide shortly on whether an EGM called for 30 March to discuss a takeover from shareholder Toho Zinc, will go ahead after all.

Last week CBH received a bid from Belgian zinc miner, Nyrstar, who have now written to the company saying that it needs to know if the EGM is still to go ahead. CBH said that a preliminary response will be made between now and next Monday, when Nyrstar wants a response to its bid.
Nyrstar’s bid of A19.5c per share compares with an earlier Nyrstar bid of A13.5c per share.