PANAUST REJECTS TAKEOVER BID
Written on the 15 April 2015
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).