MC Mining reiterates opposition to Goldway takeover offer

(Alliance News) - MC Mining Ltd on Wednesday reiterated that its shareholders should reject an offer from Goldway Capital Investment Ltd.

Goldway, a consortium including MC Mining's largest shareholders Senosi Group Investment Holdings and Dendocept, has offered 16 Australian cents per share, or approximately 8.28 pence. Goldway first launched its takeover bid for MC Mining in February.

The offer closes on Friday, unless it is extended or withdrawn by Goldway, MC Mining said.

In Sydney, MC Mining shares closed flat at AUD0.14 on Monday. The shares were flat at 7.24 pence on Wednesday in London, but they lost 8.1% to ZAR1.70 each in Johannesburg.

MC Mining said Goldway had claimed that the group's independent expert had adopted a market value approach to valuation, which "does not consider any potential future operating cashflow generated from MCM's assets".

It said Goldway had made "false assertions" that its Vele Aluwani Colliery is on care and maintenance.

MC Mining has maintained that Goldway's takeover offer undervalued the coal producer.

"The IBC confirms and reiterates its unanimous recommendation that Shareholders DO NOT ACCEPT the offer," the company said, referring to its independent board committee.

By Artwell Dlamini, Alliance News reporter

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