Central Australian Phosphate (ASX: CEN) has rejected an off market takeover offer from Rum Jungle Resources (ASX: RUM) and has received a separate indicative, non‐binding proposal from Monument Mining (CVE: MMY).
The company said Rum’s offer of one share plus A$0.20 cash for every 20 Central Australian Phosphate shares was neither fair nor reasonable.
It noted that an independent expert had value its shares at between $0.028 and $0.042 with a preferred value of $0.035 which represents a 62.8% premium to the implied value of the Rum Jungle Offer of $0.0215 based on the closing price of Rum Jungle Shares on 12 February 2013.
This premium increases to 89.2% based on the closing price of Rum Jungle’s shares on 18 April 2013.
Rum Jungle said the rationale behind the offer provides benefits from combining the two companies into a larger company - as they both have complementary assets.
Separately, Canada’s Monument Mining is offering to acquire Central Australian for A$0.031 cash per share, valuing the company at about $18.3 million.
This represents a 24% premium on Central Australian’s current share price of $0.025.
The off-market offer would be subject to conditions including a 50.1% minimum acceptance condition, no material acquisitions, disposals, etc and no material adverse change in Central Australian.
Monument is a C$93 million market cap. that owns and operates the producing Selinsing Gold Mine in Malaysia.
Central Australian noted there was no guarantee that the Monument Mining proposal will result in an offer being made.
The company had a cash position of around $1.04 million at the end of December 2012.
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