Australia potash explorer Elemental Minerals receives takeover bid

28 August 2013 16:10  [Source: ICIS news]

LONDON (ICIS)--Australia-based potash exploration firm Elemental Minerals has received a formal takeover bid from Hong Kong-listed investment holding Dingyi Group, it said on Wednesday.

Under the offer, Dingyi would buy all of Elemental’s ordinary shares for Australian dollar (A$) 0.66/share, representing a 52% premium to Elemental’s volume-weighted average price over the 20 days prior to 27 August, Dingyi said in its “bidder statement”.

Elemental’s shares were up 16% to A$0.50/share on the Australian Stock Exchange on Wednesday, for a market capitalisation of A$145.7m ($130.1m), according to information on the company’s website.

Elemental is planning to develop a potash project in the Republic of Congo. In related news, Elemental announced on Wednesday that the environmental impact assessment for the Congo project has been approved by the Republic of Congo’s environment and tourism ministry.

Dingyi is an investment company controlled by Li Kwong Yuk, a Chinese entrepreneur who has a range of business interests, primarily in Hong Kong and mainland China.

($1 = A$1.12)

By: Stefan Baumgarten
+1 713 525 2653

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