PNA ENDORSES TAKEOVER BID

Written on the 11 May 2015

PNA ENDORSES TAKEOVER BID PANAUST (ASX: PNA) is recommending for shareholders to accept the newly increased GRAM takeover bid.

GRAM has agreed to increase its all-cash offer price to $1.85 per share, which will value PNA shares at approximately $1.2 billion.

All independent PNA directors intend to accept the offer, in the absence of a superior proposal.

The offer represents an eight per cent premium to the initial GRAM offer, which shareholders rejected. It also represents a 51 per cent premium to the last closing price for PNA shares prior to the offer.

Unless a competing proposal emerges, GRAM will not increase its offer price.

PNA chairman Garry Hounsell says this represents the best option for PNA shareholders to "realise premium value at this time for their shares".

"The revised offer enables our shareholders to realise a compelling premium for their shares and provides certain cash value," says Hounsell.

"GRAM has been a supportive shareholder since 2009 and it is encouraging that through the offer they have endorsed the company's strategy as well as the management and employees who ultimately are responsible for making PanAust the high quality company that it is today.

"GRAM is well-placed to support the long-term strategy of the company, including the development of the Frieda River Project in PNG."

The company owns a 24.26 per cent stake in PNA, with this being likely to "significantly increase" if the offer goes through according to PNA's release to the market.

The offer is set to close on 15 May 2015 unless extended.



Latest News

WHAT THE COLLAPSE OF ADWORDS MEANS FOR THE FUTURE OF ONLINE MARKETING

IT'S the story that has rocked the world of advertising. The once reliable, seamless, and lucrative Google (NASDA...

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as ex-Cyclone Debbie moves inland...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter