RCI receives competing offer
November 4, 2009
Rocklands Richfield Limited (RCI) announced that its board has determined that Chinese commercial coke producer Meijin Energy Group’s recent takeover proposal is superior to the Jindal Proposal offered in September. Earlier this week Meijin proposed to acquire 100% of the shares in RCI at an offer price of 52c cash per share.
Jindal proposed to acquire 100% of the shares in RCI at $0.42 cash per share.
Rocklands said the Meijin Proposal would be undertaken either by a scheme of arrangement between RCI and its shareholders or by a takeover bid, and otherwise on terms to be set out in an Implementation Agreement to be agreed and executed by RCI and Meijin.
“Shareholders should note that, at this stage, neither the Jindal Proposal nor the Meijin Proposal are formal offers capable of being submitted to shareholders for their consideration,” the company said.
“Both offers are preliminary proposals only that are subject to (among other conditions) due diligence and formal terms and conditions being agreed and documented in an Implementation Agreement.”
Rocklands said the offer values RCI at A$200 million on a fully diluted basis plus the value of cash held by RCI and any further funds received by RCI from the exercise of RCI convertible securities by existing security holders.
As at 1013 AEDT, Rocklands Richfield shares were trading at 34c.
Jindal proposed to acquire 100% of the shares in RCI at $0.42 cash per share.
Rocklands said the Meijin Proposal would be undertaken either by a scheme of arrangement between RCI and its shareholders or by a takeover bid, and otherwise on terms to be set out in an Implementation Agreement to be agreed and executed by RCI and Meijin.
“Shareholders should note that, at this stage, neither the Jindal Proposal nor the Meijin Proposal are formal offers capable of being submitted to shareholders for their consideration,” the company said.
“Both offers are preliminary proposals only that are subject to (among other conditions) due diligence and formal terms and conditions being agreed and documented in an Implementation Agreement.”
Rocklands said the offer values RCI at A$200 million on a fully diluted basis plus the value of cash held by RCI and any further funds received by RCI from the exercise of RCI convertible securities by existing security holders.
As at 1013 AEDT, Rocklands Richfield shares were trading at 34c.
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