OreCorp’s backers are seven months out from Silvercorp’s opening shot and nowhere near seeing a payday from either party.
Back in August, Toronto-listed Silvercorp put the company in play, lobbing a bid worth 60¢ at the time, split across 15¢ cash and 0.967 scrip. Just before Australia Day, interloper Perseus Mining hit back with a competing bid at 55¢ in cash, which still stands. Silvercorp, on January 16, had already upped its offer to 19¢ in cash, while leaving the scrip component unchanged.A takeover tussle is welcome news for shareholders in ordinary circumstances.
What does the target think of the situation? The independent expert report noted the all-cash Perseus bid is higher and more certain. However, both it and the target’s directors are still recommending Silvercorp’s cash and scrip bid because it has powered through Tanzanian government approvals while rival bidder, Perseus, is running late on presenting equivalent checks.
Despite the board making its preference clear, it’s a catch 22 for investors. They don’t want to accept the Perseus offer until they see the government approvals, and they don’t want to accept Silvercorp’s offer on headline value and – more importantly – the lack of clarity around its arrangements around economics of the project with the Tanzanian government.
Sources also suggested, as a part of Tanzanian approvals, Silvercorp may have received a request for the government to increase its stake in the project. Naturally, any such arrangement – should it exist – would impact future returns for Orecorp shareholders thinking of accepting Silvercorp shares under its bid.for Perseus, especially if its government approvals for OreCorp drag along. Should that play out, Perseus could divert its cash from OreCorp to Akyem.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AJ’s class act after thunderous KO as ‘biggest fight ever’ loomsBoxing: Catch all the best moments from the explosive bout between Anthony Joshua and Francis Ngannou
Read more »
Uncertainty looms over Pakistan's general election resultsThe results of Pakistan's general election remain uncertain as both leading contenders claim victory amidst allegations of vote rigging and disputed ballots. Ayesha Jalal, an expert on Pakistan's political history, discusses the implications and potential outcomes of the election.
Read more »
Powerful storm cell brings deluge, damaging winds, hail to large parts of SydneyThunderstorms brought extreme winds, large hailstones and heavy rainfall.
Read more »
Julian Assange's last shot at freedom looms. His wife 'doesn't have hope' he'll succeedAustralian WikiLeaks founder Julian Assange's wife says his last-ditch legal challenge to stop his extradition from Britain to the United States is a matter of life and death.
Read more »
Growing rarity of large families in a world of plunging fertility ratesSana and Bill Soliola always wanted a big family, but they never expected to have 10 children and another on the way. In a world of plunging fertility rates, large families like the Soliolas are becoming a rarity.
Read more »
Alleged trespass triggers large police operation in Sydney CBDPatrol officers have been called to a building in Elizabeth Street, Sydney.
Read more »