PANAUST REJECTS TAKEOVER BID

Written on the 15 April 2015

PANAUST REJECTS TAKEOVER BID PANAUST (ASX: PNA) has rejected an unsolicited offer by Guangdong Rising Assets Management (GRAM) on the belief the price offered is inadequate.

The company's board recommends shareholders reject GRAM's offer of $1.71 per share, which is below PNA's current share price of $1.74.

PNA managing director Fred Hess says despite any challenges posed by the resource sector, he is confident PNA can drive long term value for its shareholders.

"Whilst investor sentiment towards the resources sector remains variable and driven by shortterm factors, at PanAust we are confident that we have the right assets in the right commodities to drive long term value for our shareholders," says Hess.

"When faced with any takeover offer, PanAust shareholders should expect the offer price to fairly reflect this longterm value potential. We believe GRAM's current offer price falls short of this level."

In a statement to its shareholders, PNA said GRAM's offer has deliberately come at a low point in the commodities price cycle, fails to recognise the strong performance of the company's Laos business and doesn't appropriately consider PNA's long term outlook.

Elaborating on this, copper and gold prices were trading at near 5-year lows when the offer was announced. Meanwhile, record quarterly copper and gold production was achieved at PNA's flagship Laos mine in the March 2015 quarter.

PNA is strongly urging its shareholders take no action in response to the offer considering acceptances are final and cannot be revoked.

A shareholder information line has been established to address any queries in relation to the GRAM offer - 1800 990 363 (toll free within Australia) or +61 1800 990 363 (callers outside Australia).



Latest News

FORMER MFS EXECUTIVES HIT WITH DISQUALIFICATIONS AND MASSIVE FINES FOR MISAPPROPRIATING FUNDS

FIVE key players involved in an investment company that collapsed in 2008 owing $2.5 billion have been ordered to ...

SURFSTITCH BATTLING FOR SURVIVAL

QUEENSLAND based online retailer SurfStitch Group has gone into a voluntary trading halt for three months after it wa...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

THE AMBITIOUS PLAN TO TURN A COLLAPSED FRANCHISE INTO AN EXPANDING BUSINESS

AUSTRALIA'S newest master franchise is set to launch in October as a commercial cleaning operation, resurrecte...

Related News

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

SIGMA'S SHARE PRICE TAKES A BATTERING AS IT LAUNCHES LEGAL ACTION OVER SUPPLY DEAL

SIGMA Healthcare (ASX: SIG) has taken the MyChemist and Chemist Warehouse chains to court to demand they continue to ...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter