MC Mining, a South Africa-focused coal miner, has received a higher takeover proposal from Vulcan Resources compared to a previous offer from Goldway Capital consortium.
Details of the Offer
- Vulcan Resources has proposed a cash offer between A$0.17 and A$0.20 cents per share, valuing MC Mining at A$69.34 million to A$81.58 million (approximately $54 million).
- This represents a 21% to 43% premium over MC Mining’s closing share price of A$0.14 on Thursday.
- The offer is non-binding and subject to customary conditions, including due diligence.
Comparison with Previous Offer
- This offer is higher than the previous A$0.16 per share offer received from Goldway Capital consortium (which consists of Senosi Group Investment Holdings and Dendocept Proprietary) last year.
- The MC Mining board had previously rejected the Goldway Capital consortium offer.
Current Status
- The MC Mining board’s independent committee will evaluate the Vulcan Resources proposal with its advisors.
- There is no certainty that a formal offer will be made by Vulcan Resources.
- The board reiterated its recommendation to shareholders to reject the current Goldway Capital consortium offer.
Market Reaction
- MC Mining shares in London rose 0.50 pence (6.9%) to 7.75 pence on the news.
- However, the shares are still down 25% over the past year.
Additional Notes
- Vulcan Resources is the operator of the Moatize coal mine in Mozambique, the largest operating steelmaking coking coal mine in Africa.
MC Mining shareholders should closely monitor the situation and await further announcements from the company’s board. They are advised to consult with financial advisors before making any decisions regarding their shares.
Source: TheCoalTrader, AI generated
