CBH directors accept Toho offer
Wednesday June 2, 2010, 7:02 pm
au.biz.yahoo.com
CBH Resources Ltd says its directors have accepted a takeover bid by the lead, zinc and silver miner's largest shareholder, Japan's Toho Zinc Co Ltd.
The directors are Robert Willcocks and Ian Plimer, an academic and climate sceptic who is also a director of minerals explorer Ivanhoe Australia Ltd.
CBH said in a statement on Wednesday that another CBH director, Lewis Marks, had placed his shares in the company into an institutional acceptance facility.
CBH managing director Stephen Dennis intends to lodge an acceptance for his shares shortly before July 7.
The bulk of Mr Dennis's shares are affected by security provisions arising from funding arrangements approved at the 2008 annual general meeting, CBH said.
Toho has offered 24 cents per CBH share and also seeks to buy all of the target's outstanding convertible notes for $1,000 per note.
CBH directors backed the proposal in late April after noting that the offer price exceeded an independent expert's valuation for CBH of between 19.5 cents and 23.9 cents per share.
Belgium's Nyrstar was previously a rival suitor, upping its offer price from 13.5 cents per CBH share to 19.5 cents for each share in the target, but recently indicated that it would not make a fresh offer in light of Toho's higher bid.
Underground development of CBH's Rasp mine at Broken Hill, in NSW, was suspended in June 2008 with the fall in commodity prices amid the global financial crisis.
Shares in CBH closed unchanged at 23.5 cents on Wednesday. |
