(Alliance News) - MC Mining Ltd on Monday again urged shareholders to not accept a takeover offer from Goldway Capital Investment Ltd.
The Canberra, Australia-based and South Africa-focused coal mine developer first received the offer, for 16 Australian cents per MC Mining share, from Goldway in February.
Shares in MC Mining were untraded on Monday in London at 7.25 pence. They were also untraded in Johannesburg, at ZAR2.00 each.
Goldway is a consortium comprising Senosi Group Investment Holdings and Dendocept, MC Mining's largest shareholders.
MC Mining, which referred to itself as "the supplementary target", told shareholders on March 4 to reject the offer.
On Monday, MC Mining added that according to the "independent expert's report" by BDO Corporate Finance (WA) Pty Ltd, the acquisition bid "is neither fair nor reasonable" to MC Mining's shareholders.
The company said it "continues to unanimously recommend that shareholders DO NOT ACCEPT the takeover offer".
MC Mining said BDO assessed the value of its shares to be between 21.4 cents and 35.6 cents, with a preferred value of 28.5 cents.
BDO noted that on the one hand, Goldway's offer provides "certainty of value" and "the opportunity to exit the coal industry". On the other hand, it said MC Mining shareholders would "forego the opportunity to participate in any potential upside of the target's mineral assets" and would "lose exposure to coal" if they accepted the bid.
Earlier in March MC Mining received a rival proposal from Vulcan Resources Ltd, of between 17 and 20 cents per share, valuing the company at up to AUD81.6 million or about GBP42.2 million.
However, last week Tuesday MC Mining said that Vulcan would not proceed with a formal offer.
By Emma Curzon, Alliance News reporter
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Mc Mining (MCM)