Mega clinches uranium dealadmin
MEGA Uranium yesterday launched its second takeover bid for an Australian uranium company this year, with a scrip offer for junior explorer Redport.
Mega successfully bought out South Australian company Hindmarsh Resources earlier this year for the equivalent of about $1.66 per share and its bid comes just a day after a rebuffed Hong Kong bid for fellow local company Marathon Resources.
Unlike Marathon, Redport’s board unanimously supported the bid, which valued the company’s stock at 14c per share.
Redport stock lifted 2c to 13c yesterday and the news gave a boost to its peers, with Toro Energy surging 18.9 per cent to 69c and Monax Mining up 1.5c to 18c.
The offer values Redport at $74 million undiluted or $98 million on a fully diluted basis, including all classes of stock.
Mega is a Canadian-listed company with uranium projects in SA, Queensland, Northern Territory, Argentina, Mongolia and Bolivia.
Redport’s directors said they intended to accept the offer in the absence of a higher offer with respect to their own share and option holdings.
Under the proposed transaction, all Redport shareholders will be offered 10 new Mega shares for every 574 Redport shares held. Listed option holders will be offered 10 Mega shares per 894 listed options.
Mega said it already had 15.6 per cent of Redport’s shares and options and, along with its associates, had 18.2 per cent.
Shareholders would receive a bidder’s statement in about six weeks time. The deal would be subject to Foreign Investment Review Board approval.
Meanwhile, Crosby Capital Partners’ 68c per share bid for Marathon looks doomed with the board, which controls 22.8 per cent of the stock, rejecting it as opportunistic, heavily conditional and poor value.