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Perseus Mining (ASX:PRU) is going after the remaining shares in Predictive Discovery (ASX:PDI), today lodging a “superior” acquisition offer that would see it consolidate ownership of the West African gold developer.
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The deal would make an “excellent strategic fit,” the company declared alongside the registered buy offer, especially because Perseus already has experience at Nyanzaga, has built cash flow from its own projects, and would “unlock significant exploration potential in the Siguiri Basin” with its combined efforts.
“This transaction is financially compelling, and [would] materially enhance earnings, cash flow, and production going forward,” the company’s spokespeople wrote.
The unsolicited bid, which tallies up to $1.6 billion, puts an instant dent in Canadian suitor Robex Resources’ (ASX:RXR) plans to merge with Predictive.
Perseus is offering 0.1360 new Perseus shares for every one Predictive share held by investors right now. The proposal lines up to 77.8cps, a 24.5% premium on Predictive’s last closing price (62.5cps) and a 34.8% premium to its 10-day VWAP. Robex had been preparing a $2.5B merger after an October handshake.
Alongside the December 3 swoop, Perseus has also offered to give Predictive a binding $37 million loan facility, which would immediately be available. This, Perseus has said, would help Predictive pay the Robex break fee.
Robex now has five days (through to December 10) to file a counterproposal that either meets Perseus’ valuation or even exceeds the value.
The offer offensive has seen PRU shares drop -3.5%; PDI has been up +17%.
On the other side, RXR shares have dumped as much as -12.9%.
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