(Alliance News) - MC Mining Ltd on Wednesday maintained that the takeover offer from a consortium led by Goldway Capital Investment Ltd undervalued the coal producer.
The Canberra, Australia-based and South Africa-focused coal mine developer said it held to its recommendation that its shareholders should reject the Goldway offer. It said it was responding to the second supplementary statement from Goldway, dated Thursday last week.
Goldway first launched its AUD0.16-a-share takeover bid, or USD0.10-a-share, for MC Mining last month. Its offer remains open until April 5.
In Sydney, MC Mining shares closed at AUD0.14 on Wednesday. They were down 1.3% in London at 7.15 pence. They fell 0.5% to ZAR1.99 in Johannesburg.
MC Mining said its independent board committee "unanimously recommends that shareholders do not accept" the offer.
Goldway is a consortium comprising Senosi Group Investment Holdings and Dendocept, MC Mining's largest shareholders. Goldway had a 67% stake in MC Mining as of Friday, up from 66% previously.
MC Mining said the Goldway offer was "significantly" below the valuation range assessed by the independent expert of between AUD0.21 and AUD0.36 per share, with a preferred value of AUD0.29.
The committee believes that Goldway's offer does not take into account the true life of mine coal resources at Vele Aluwani Colliery.
Also, MC Mining said the AUD0.16 offer is below the initial indicative price range of AUD0.20 and AUD0.23 proposed by the major shareholders and initial consortium members, Dendocept Pty Ltd and Senosi in September 2023.
By Artwell Dlamini, Alliance News reporter
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Mc Mining (MCM)