likely to be swallowed by Chinese firm
Perilya likely to be swallowed by Chinese firm, its major shareholder
Cecilia Jamasmie | August 30, 2013
Perth-based miner Perilya (ASX:PEM), which owns the famous Broken Hill lead-zinc-silver mine that gave birth to BHP Billiton, is likely to be absorbed by Shenzhen Zhongjin Lingnan Nonfemet Co (SZLN) its major shareholder in a deal worth around US$180 million.
According to The Australian, the State-owned Asian firm, which is now one of China's largest zinc-lead producers after acquiring 50.1% of the Aussie company in 2009, is fine tuning details for a takeover bid.
The article quotes sources close to the companies as saying it is almost impossible that any group other than Zhongjin Lingnan bids for Perilya, not only because the Chinese group is already the Aussie miner's main stakeholder, but especially given the traditional reluctance of Chinese companies to compete for control of the same asset.
Perilya, which posted its half-year financial results on Friday, went into a trading halt because of a "potential control transaction.
In October last year the Land and Environment Court found that Perilya's three mines in Broken Hill, located west of outback New South Wales, were worth $5.9 million rather than the $21 million they had been valued at by the Valuer-General.
Earlier this month, Australias Supreme Court ruled that both the Valuer-General and the mining company made errors in working out the value of Perilyas mines in Broken Hill.
The company reported today a net loss before tax of A$29.2 million, down from a net profit before tax of A$8.3 million in the same period last year. Revenue from operations for the period dropped to A $139.1 million, down 14% from the $161.3 million logged in the first half of 2012.
BHPs name stands for "Broken Hill Proprietary."
Well, MP, this could become my cup of tea with handle very soon. The rim of the cup should be at about 24c. Well it would require me to go long though and that is the problem.
What do you think, should I change policy and have a bit of both short and long?
Sooner or later I knew you would have to go long, MA :D
Going long is not that painful, trust me :lol:
New month new game you reckon? I might just try it to see if I can stand the pain :wink
Will keep an eye on this one though!
Zhongjin Lingnan Proposal to acquire Perilya at $0.35 per share
Perilya Limited (Perilya or the Company) today announced that the Company has entered into a binding Scheme Implementation Agreement (SIA) with its major shareholder, Zhongjin Lingnan Mining (HK) Company Limited (Zhongjin Lingnan) (a wholly owned subsidiary of Shenzhen Zhongjin Lingnan Nonfemet Co., Limited) under which it is proposed that Zhongjin Lingnan will acquire all the outstanding shares in Perilya that it does not already own by way of a Court approved Scheme of Arrangement (Scheme) for an offer consideration of $0.35 per share (Proposal).
If the Scheme is approved and implemented, Perilyas shareholders who are not associated with Zhongjin Lingnan or its related entities (Minority Shareholders) will receive cash consideration of $0.35 for each Perilya share they own.
The Perilya independent directors1 (Independent Directors) unanimously support the Proposal in the absence of a superior proposal and subject to the Independent Expert (defined below) determining that the Scheme is in the best interests of Perilya shareholders and intend to vote, or cause the voting of any shares in which he or she has a relevant interest, in favour of the Scheme.
The offer price of $0.35 per Perilya share represents a substantial premium to the historical trading price of Perilya shares as set out below:
59% premium to the closing share price on Friday 30 August 2013 (i.e. the date on which Perilya went into trading halt pending further announcement) ($0.22);
85% premium to 1 month Volume Weighted Average Price ($0.189);
109% premium to 3 month Volume Weighted Average Price ($0.167); and
64% premium to 12 month Volume Weighted Average Price ($0.214).
The Proposal is conditional upon the following key conditions:
Minority Shareholder requisite approval;
Australian Foreign Investment Review Board (FIRB) approval and other regulatory approvals including ASIC, ASX;
Chinese regulatory approvals;
Confirmation from Ernst & Young Transaction Advisory Services Limited (the independent expert engaged by Perilya) (Independent Expert) that the Proposal is in the best interests of Minority Shareholders;
a unanimous recommendation by Perilyas Independent Directors in support of the transaction, subject to the Independent Expert opining that the transaction is in the best interests of Minority Shareholders and no superior proposal emerging;
Endorsement from the Court;
No material adverse change occurring; and
No prescribed occurrences.
Currently up 45.45% - nice :D
Not everyday you get a bid like this one @ 59% premium to last traded price before TH.
"How do you like the tea MP?" In a cup with a handle :lol:
Yes, very nice.
Sorry MP, I assuming you can see the C&H pattern in the chart. If not or anyone else would like an explanation of the pattern just let me know.
Actually in this case there are two sets of C&H patterns. The smaller one has gone of and the target price of 29 to 30c has been more than reached. The larger C&H pattern was also triggered during this process, however its target price of 51 to 53c will not be reached anymore unless the TO price is going to be increased, e.g. because an even better offer comes along or the response of holders is forcing it.
The Chinese are poison to these companies.....typical RIP PEM sold for a steal and shareholders lose again. :evil:
I feel for all shareholders.... its happening everywhere.
Just look @ management how they wrecked it!