Eramet said June 13 that it increased its proposed off-market takeover offer to acquire all the issued shares of Mineral Deposits Ltd. it does not already own to A$1.75 per share in an all-cash transaction that values Mineral Deposits at about A$344.7 million.
Mineral Deposits is Eramet's partner in the TiZir Ltd. joint venture, the operator of an integrated mineral sands business, which owns titanium dioxide and zircon assets in Senegal and Norway, on a 50/50 basis.
The increased offer reflects a 51% premium to the last closing price of Mineral Deposits shares prior to the offer's announcement in April at A$1.16 and a 59% premium to the one-month volume-weighted average price of Mineral Deposits shares at A$1.10.
In April, Eramet proposed an offer of A$1.46 per share to acquire all of the issued Mineral Deposits shares it did not already own in a deal valuing the latter at about A$291 million, but Mineral Deposits recommended shareholders reject the offer, saying the deal was "grossly inadequate" and undervalued the company.
This "last and final" offer put up by Eramet, due to close July 13, will become unconditional upon meeting the 50.01% threshold of acceptances. The acquisition will be funded using existing cash reserves, which Eramet said is well in excess of its increased offer.