Bellanhouse recently advised Summit Resources Limited (Summit) (ASX: SMM) on its entry into a Bid Implementation Agreement by Paladin Energy Limited (Paladin) (ASX: PDN).
Summit Resources is an Australian uranium exploration company and holds several deposits in Queensland, with its main project “Isa North” covering approximately 935kms near Mt Isa.
Paladin is Summit’s largest shareholder, owning a 82.1% stake in the company. Paladin intends to make an off-market bid for the remaining shares it doesn’t own and has proposed to offer one Paladin share for every Summit share held by Summit shareholders.
The offer values Summit’s shares at 20 cents each, a 68.33% premium to Summit’s closing price before the announcement of the transaction of 12 cents per share and values the share capital of Summit at approximately $44million. The offer is subject to Paladin having at least 75% acceptances of the offer and a relevant interest in more than 90% of all of the Summit shares and additional customary conditions.
Summit’s board of independent directors unanimously recommended shareholders accept the offer in the absence of a superior offer and the independent expert not concluding that the offer is not fair and not reasonable.
Summit’s non-executive director Mal Randall said, “Paladin’s offer provides Summit shareholders with an opportunity to become shareholders in a company that has exposure to a broader range of uranium projects and with a stock which has greater liquidity than what Summit currently enjoys,”
The transaction is expected to complete in October 2018.
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