Perseus Mining to buy ASX rival Predictive Discovery in all-scrip deal
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The news: Gold miner Perseus Mining is set to buy its smaller rival Predictive Discovery, after its takeover offer was deemed superior to a proposed merger with Canada's Robex Resources.
The numbers: Perseus' offer of 0.1360 of its own shares for every Predictive share held implies a price of 77.8 cents per share, based on Perseus' last closing price of $5.72.
This represents a 24.5% premium to Predictive's last closing price and a 34.8% premium to its 10-day volume weighted average.
Perseus, which already holds 17.8% of Predictive's shares, would buy the remainder of shares it does not already own under the proposal.
The context: Predictive's board unanimously determined that Perseus' offer was favourable to the merger with Robex.
As part of the transaction, Perseus has offered a binding $37 million loan facility to Predictive, which will be available immediately for drawdown to assist with any termination fee payable under its agreement with Robex. It will also contribute to general working purposes and pre-development activities.
The deal remains subject to regulatory and court approvals, and will require a 75% majority support by Predictive shareholders at a scheme meeting.
