Lemur Resources Accepts Takeover Offer from Bushveld Minerals

Mining Weekly reported that Lemur Resources Ltd. (ASX:LMR) has accepted an off-market takeover offer from Bushveld Minerals Ltd. (LSE:BMN), its majority shareholder. Bushveld will pay AU$0.06 for each ordinary Lemur share; that places a value of AU$10.87 million on the company.

As quoted in the market news:

 Noting that it had accepted the offer “in the absence of a superior proposal”, Lemur said on Friday that an independent expert had considered the offer “not fair but reasonable”, notwithstanding that the offer price was below the expert’s preferred valuation of A$0.17 apiece.

The company believed the offer provided certainty of cash consideration and a premium to recent trading of Lemur shares and removed the risks associated with holding shares in Lemur, although it acknowledged that shareholders would be unable to benefit from the potential future upside in the company.

Lemur said in a statement:

The independent directors consider a superior proposal is unlikely, as Bushveld holds a 63.6% relevant interest in Lemur [despite there now being] risks to remaining a minority shareholder in Lemur, including potential delisting from the ASX.

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