CBH Resources revises Toho offer over Nyrstar bid
18 Mar 2010
The directors of CBH Resources Limited (CBH), Australia's base metal miner recommended today the revised proposal from its major shareholder Toho Zinc Company Limited (Toho) of Japan over last week's sweetened takeover bid from Belgium's Nyrstar NV, the world's largest zinc producer.
Balen-based Nyrstar NV, had upped its previous bid for the takeover of the Australian miner to 19.5 cents a share, valuing CBH at A$213 million. (See: Nyrstar raises bid for Australian zinc miner CBH Resources)
Subsequently, on Monday Toho, which already holds a 23-per cent stake in CBH, raised its offer to 25 cents per share to counter Nyrstar's latest bid. The revised Toho proposal is 28 per cent above the latest Nyrstar offer and about 79 per cent higher than the closing price of CBH share on 11 March 2010.
Both the proposals have been under review by an independent committee consisting of CBH directors.
On completion of the assessment, CBH managing director Stephen Dennis said, ''Toho's revised proposal will provide CBH shareholders with the best of both worlds. Shareholders will be able to receive significant near term gains on a portion of their CBH shares, and they will also have the opportunity to participate in the future growth of the company through the development of the Rasp Project and the planned increase in production at the Endeavor Mine.''
The de-levering of the company , along with Toho's undertaking to support CBH in financing the Rasp Project, will also ensure that this important new mine is brought quickly into production, '' Dennis further said.
