George Forrest Rejects Liability for Forsys BreakGeorge Forrest Rejects Liability for Forsys Break Fee (Update1)
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By Franz Wild
Aug. 27 (Bloomberg) -- George Forrest International Afrique Sprl, theoperator of mines in Democratic Republic of Congo, rejected liabilityfor a break fee after a failed takeover of Canadian uranium developerForsys Metals Corp. said.
George Forrest “denies any further liability of any kind toForsys under the Arrangement Agreement for any reason and specificallydenies any liability for payment of any reverse break fee,” thecompany said in an e-mailed statement late yesterday.
Forsys Metals, the developer of a uranium project in Namibia, agreed onNov. 14 to be bought by GFI for C$7 ($6.37) a share, or about C$578.8million at the time. On April 2, GFI extended the closing date for itsacquisition.
Forsys on Aug. 25 said it had stopped the takeover and was pressing for the break fee after George Forrest didn’t pay.
GFI “believes that Forsys has breached the arrangement agreementand caused loss and damage to” the company, according toyesterday’s statement.
Oakville, Ontario-based Forsys didn’t immediately respond to amessage left on its answer phone or an e-mail sent to thecompany’s e-mail address seeking comment.
To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net