Silvercorp accepts Perseus takeover offer for Orecorp
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The news: Silvercorp has accepted the takeover bid of rival suitor Perseus for African gold explorer OreCorp.
The numbers: WA-based Perseus, which operates three gold mines in Africa, said that Canadian miner Silvercorp accepted the offer for a total of around 73.9 million shares, representing 15.61% of issued OreCorp shares. Perseus now holds a 74.98% stake in Orecorp.
The context: OreCorp's board previously backed an offer from Silvercorp, which held a 15.74% stake in the company at the time.
However, Perseus later made an improved proposal of 57.5 cents per OreCorp share, topping Silvercorp's scrip deal valuing ASX-listed OreCorp at 53.4 cents per share.
OreCorp shares last closed at 57 cents.
OreCorp consequently recommended that shareholders accept an Perseus' offer, after terminating the bid from rival suitor Silvercorp.
Silvercorp is entitled to a break fee of $2.8 million.
The source: ASX announcement
