PanAust in trading halt over takeover talks

PANAUST has entered a trading halt as takeover talks continue with China’s Guangdong Rising Assets Management.
PanAust in trading halt over takeover talks PanAust in trading halt over takeover talks PanAust in trading halt over takeover talks PanAust in trading halt over takeover talks PanAust in trading halt over takeover talks

In an update this morning the copper miner said it expected to resume trading on Monday, with a number of spectators tipping a deal to eventually be sealed.

The speculation comes after GRAM made a $A1.71 per share unconditional offer at the end of March.

PanAust formally rejected the offer, saying it had been opportunistically lobbed at a low point for its share price and commodity prices.

Taking stock of the latest developments, GMP Securities said yesterday it appeared many of PanAust's larger shareholders were holding out for a higher offer.

The initial GRAM offer closes on May 15.

"It's expected that if GRAM declares the offer final, the larger institutional holders will sell and give GRAM a majority holding, although not the 90% required," GMP said.

"Time is running out for PanAust management to negotiate better terms for its shareholders. But it appears GRAM will walk away the definitive victor of the well-timed bid."

Earlier this week Macquarie lifted its target price for PanAust from $1.71 to $1.80 in anticipation of a higher offer from GRAM.

"GRAM currently owns 24% of PanAust and we believe that a small lift in the offer price to $1.80 could be sufficient to get the deal done," analysts said.

PanAust shares were in a trading halt at $1.73 this morning.

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