PERTH (miningweekly.com) – Perth-based explorer NGM Resources on Monday reported a “technical breach” in the conditions of a takeover offer from uranium miner Paladin Energy.
The ASX- and TSX-listed Paladin Energy has made a A$27-million all-script takeover offer for NGM Resources, in which it already had a 22,5% stake.
However, NGM on Monday reported that the Deutsche Bank Group has acquired a 10,7% relevant interest in the issued capital of NGM Resources, breaching one of the conditions of the proposed Paladin offer.
NGM director Robert Kirtlan said that the company was now awaiting advice from Paladin as to whether it intends to waive this condition to allow its takeover offer to proceed.
“NGM has not had any communication with Deutsche Bank Group, nor is it aware of Deutsche Bank Group’s intentions or motivations for acquiring this relevant interest,” said Kirtlan.
“At this time, NGM’s board has no reason to believe that any party is planning to launch a competing offer to the Paladin offer,” he added.
NGM has previously reported that the Paladin offer provided an attractive premium of 54% to the five-day volume weighted average price of NGM shares, and the company directors unanimously recommended that shareholders accept the offer.
Paladin said that the proposed acquisition would add to its portfolio of early-stage uranium exploration projects, and would give it a presence in a country with a long history of uranium production.
“The potential acquisition of a large, underexplored landholding within the highly prospective Tim Mersoi basin will provide Paladin with the opportunity to potentially unlock significant value by applying its proven uranium exploration and development capabilities,” said Paladin MD and CEO John Borshoff.
Paladin owns the Langer Heinrich mine in Namibia and the Kayelekera operation in Malawi.
Borshoff also noted that the dilution to Paladin’s shareholders with the acquisition would be less than 1%, and said that, given the relative size of the company, Paladin believed that NGM could be easily integrated.
The takeover offer was subject to a minimum acceptance of 90%, as well as regulatory approval, including consent from the TSX.
Edited by: Esmarie Swanepoel