Goldway Capital Investment has made significant strides in its bid to acquire MC Mining, extending its offer period and increasing its stake in the coal miner. The offer, initially set at A$0.16 per share, has been extended, with Goldway now owning 83.67% of MC Mining. This development has prompted Goldway to declare its offer as unconditional, signaling its firm commitment to the takeover.
In terms of rand and pound values, the offer translates to R1.96 and 8.3p per share, respectively. With the offer remaining open until April 22, shareholders have a limited window to act on the opportunity presented by Goldway’s offer.
The decision to declare the offer unconditional comes after careful consideration by Goldway and its associates, who now have a significant controlling interest in MC Mining. This move positions Goldway to potentially exercise compulsory acquisition rights if it surpasses a relevant interest of 91% in MC Mining, effectively gaining full control of the company.
MC Mining’s independent board committee (IBC) has advised shareholders to accept the offer in light of Goldway’s increasing control over the company. The IBC’s recommendation carries weight, as it represents the interests of shareholders and ensures transparency in the acquisition process. Should Goldway acquire a substantial majority of MC Mining shares, it would have the authority to compel the acquisition of any remaining shares, further consolidating its control.
However, the IBC’s stance on Goldway’s offer has not always been favorable. Initially, the committee advised against accepting the offer, citing concerns about undervaluation. This sentiment was echoed by an independent expert from BDO Corporate Finance, who estimated the true value of an MC Mining share to be higher than Goldway’s offer price. The IBC also expressed frustration when Goldway extended the offer period, deviating from previous commitments made to shareholders.
Despite these initial reservations, the IBC’s latest statement acknowledges the lack of alternative bids or competing proposals on more favorable terms. Furthermore, Goldway’s intention to delist MC Mining from the ASX, the JSE, and the AIM has raised questions about the future of the company’s public listing status.
For shareholders who have yet to accept the offer, the IBC warns of potential challenges associated with holding minority shares in an unlisted, illiquid company. Selling these shares off-market may prove difficult, and shareholders could face uncertainty regarding the timing and terms of any future compulsory acquisition by Goldway.
Amidst these developments, MC Mining’s key projects in South Africa remain a focal point of interest. The company’s operations include the Uitkomst and Vele collieries, as well as the Makhado and Greater Soutpansberg projects. These projects play a significant role in South Africa’s coal mining sector and contribute to the country’s economy.
In conclusion, Goldway’s extended offer to acquire MC Mining reflects its determination to secure a controlling interest in the company. While the IBC’s initial reservations raised concerns about undervaluation, the lack of alternative bids suggests that Goldway’s offer may be the best option available to shareholders. As the offer deadline approaches, shareholders must carefully consider their options and weigh the potential implications of accepting or rejecting Goldway’s offer.
Source: Mining Weekly
