Bastion to launch A$160m takeover bid for Xanadu Mines
Dual-listed explorer Xanadu Mines on Monday announced a proposed takeover offer from Bastion Mining, a consortium comprising Singapore-based Boroo and Xanadu director Ganbayar Lkhagvasuren.
The offer follows the recent collapse of a potential transaction between Xanadu and major shareholder and joint venture (JV) partner Zijin Mining, which ended without agreement earlier this month.
Under a bid implementation agreement, Bastion will make an off-market takeover offer for all fully paid ordinary shares in Xanadu it does not already own, at a cash consideration of A$0.08 a share. The offer implies a total equity value of A$160-million for the Mongolia-focused copper/gold developer.
Xanadu chairperson and MD Colin Moorhead said the offer represented a 57% premium to the company’s closing share price on Friday and recognised the progress made at the flagship Kharmagtai project.
“The takeover board committee directors consider the offer to be in the best interest of shareholders and unanimously recommend that shareholders accept the offer in the absence of a superior proposal and subject to the independent expert concluding that the offer is fair and reasonable,” he said.
Commenting on behalf of Bastion, Lkhagvasuren said the bid offered shareholders cash certainty at a premium, and that Bastion was well positioned to advance Kharmagtai to its next phase.
“Bastion is ideally positioned to advance Kharmagtai to the next stage of development with the benefit of Boroo’s experience in acquiring, financing and developing mining operations in Mongolia,” he said.
To support Xanadu in meeting its corporate and JV funding obligations during the offer period, Bastion has agreed to subscribe for 286 829 633 Xanadu shares at A$0.06 each, injecting A$17.2-million into the company.
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