UPDATE: Minara Fair Value Seen At 70 Cents-97 Cents Vs Glencore's 87 Cents Offer
19 Settembre 2011 - 5:32AM
Dow Jones News
Glencore International PLC's (GLEN.LN) bid to buy out minorities
in nickel miner Minara Resources Ltd. (MRE.AU) moved a step closer
to success Monday after the target's board recommended Glencore's
bid, which values the target at A$1.02 billion (US$1.05
billion).
The takeover would be Glencore's first large-scale corporate
takeover since it was listed on the London and Hong Kong stock
exchanges in May.
Minara said in a statement that an independent expert's report
by KPMG found fair value for the company between 70 cents and 97
cents, compared to the 87 cents offered by Glencore.
Glencore already controls 73.4% of Minara shares and 40% of its
key asset--the Murrin Murrin nickel mine--and the takeover is
widely expected to go ahead. A Minara board committee, which
excludes two directors who are also directors of Glencore, said
Monday that shareholders should accept the offer.
The report caused Glencore shares, which have traded around 88
cents since the offer was announced Aug. 24, to drop marginally to
the 87 cent offer price.
Alick Wong, an analyst at Louis Capital Markets in Hong Kong,
said the recommendation and positive expert's report had
extinguished hopes that the board could push for any raised
offer.
"People were betting for a higher offer but due to the market
volatility we're having now it's not very likely now," he said.
Some analysts had argued that, in spite of Glencore's dominance
of Minara's shareholder register, the timing of the offer was
opportunistic. The London Metal Exchange nickel price has fallen
sharply in recent months and production targets for Murrin Murrin
have been slashed due to a failure in the mine's processing plant
announced June 30.
But the company's chief executive, Peter Johnston, said last
Wednesday there was "no guarantee at all" that improved terms would
be forthcoming.
-By David Fickling, Dow Jones Newswires; +61 2 8272 4689;
david.fickling@dowjones.com
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