Mineral Resources Limited (MIN) has increased its takeover offer for Polaris Metals NL (POL) to one that is superior to the offer made by Lion-Asia Resources Pte. Ltd last week. The companies have agreed on the terms that Polaris shareholders would receive one Mineral Resources share and $0.60 cash for every 12 Polaris shares.
Mineral Resources has also agreed to declare its offer free of the minimum acceptance condition and said it would free the offer of all remaining conditions on acquiring 50.1% of Polaris shares.
Polaris said its board considers the improved offer to be superior to the offer proposed to be made by Lion-Asia Resources, under which Polaris shareholders would receive $0.60 cash per share.
Polaris said based on the closing price of Mineral Resources shares on ASX on 14 October of $7.24, the implied value of the Mineral Resources offer is $0.65 per Polaris share, a premium of approximately 8.3% to the Lion-Asia Offer.
Along with other benefits for its shareholders the Polaris board said it has determined to reject the current Lion-Asia Offer and continues to recommend that Polaris shareholders accept the improved Mineral Resources offer, in the absence of a superior proposal.
“As at the close of business on 13 October 2009, Mineral Resources had a relevant interest in approximately 29.2% of Polaris shares through acceptance of its offer, meaning that, if the offer becomes unconditional, Mineral Resources will become the largest shareholder in Polaris,” Polaris said.
Mineral Resources managing director Peter Wade said the company believe its increased offer represents its desire to play a meaningful role in rapidly advancing the current Polaris assets towards production.
“On successful completion of the offer both sets of shareholders will be able to jointly participate in the development of Mineral Resources, a company with a strong reputation, balance sheet, and track record of sustained success across its substantial and profitable portfolio of diverse contracting and commodity processing operations,” Mr Wade said.
Mineral Resources shares were halted at $7.24, while Polaris shares were halted at 62.5c.
