13 February 2013 12:32 [Source: ICIS news]
LONDON (ICIS)--Directors of Central Australian Phosphate Limited on Wednesday advised shareholders to "take no action" after the Sydney-based phosphate and precious metals exploration company received an "unsolicited and highly conditional off-market takeover bid" from Rum Jungle Resources Limited.
Under the terms of the offer, the Darwin-headquartered firm will pay 20 Australian cents cash plus one Rum Jungle Resources share for every 20 Central Australian Phosphate shares; implying a value of A$12.7m ($13.1m), or A$2.15 cents per Central Australian Phosphate share.
In a statement to the country's stock exchange on Wednesday, Central Australian Phosphate's board said: "The directors will review the offer documents when received and will provide shareholders further advice in due course. Meanwhile, shareholders are advised to take no action in relation to Rum Jungle Resources' offer.
"The directors will keep shareholders fully informed of further developments as they occur and will provide a formal recommendation on the bid, providing shareholders ample time to make an informed decision. The directors’ focus will be on shareholder value maximisation and this offer, or any other offers or proposals, will be considered in that context."
Earlier on Wednesday, Rum Jungle Resources said the potential acquisition would be a "compelling step in unlocking the value of our complimentary Barrow Creek and Arganara assets". Among Rum Jungle Resources' mineral resources are 136m tonnes of phosphate at Barrow Creek and a maximum inferred resource of 5.5m tonnes of sulphate of potash (SOP) at the Karinga Creek salt lake potash project in central Australia.
Rum Jungle Resources' managing director, David Muller, said: "The combined company will be better placed to increase the exploration expenditure at Arganara and attract and retain high quality people.
"Central Australian Phosphate shareholders will benefit initially from the significant up-front offer premium and are expected to benefit over the longer term as value is unlocked by combining the complementary assets of Rum Jungle Resources and Central Australian Phosphate."
(A$1 = $1.03)
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