Perilya Receives Takeover Offer from Majority Shareholder

The Motley Fool reported that Perilya Ltd. (ASX:PEM), owner of the lead-zinc-silver Broken Hill mine, received a takeover offer from China’s Shenzhen Zhongjin Lingnan Nonfemet Company Ltd. (SZSE:000060), its majority shareholder. Perilya’s directors are unanimously in favor of accepting the offer.

As quoted in the market news:

The offer is for $0.35 per share, which the company states is a 59% premium to the closing price of $0.22 on the date that a trading halt occurred, 30 August.

Zhongin Lingnan owns 53.7% of the Perilya stock, which it bought in 2009 at the depth of the GFC. The strategic alliance assisted Perilya greatly since it was on the verge of shutting down its mining in Broken Hill, where it was among several silver mines.

At that time, the company was wanting to buy back a large amount of silver it has previously sold to another mining company for $55 million. Now the 11.2 million ounces of silver is worth about $300 million.

Click here to read the full report from The Motley Fool.