Chinese investor plans Meridian takeover
July 19th, 2011Shares in Meridian Minerals jumped after the junior explorer’s largest shareholder, a Chinese state-owned entity, revealed plans for a $67.5 million takeover offer.
Meridian shares were up one cent, or 8.7 per cent, at 12.5 cents at 1343 AEST after an earlier high of 13 cents.
Meridian said Northwest Nonferrous International Investment Company, a 41.34 per cent shareholder, indicated it could bid 14 cents per share, but no formal price had been offered.
“As Northwest has not yet made a formal proposal, nor is it certain that a formal proposal will be made, discussions between Meridian and Northwest regarding the proposed price are continuing,” Meridian said in a statement on Wednesday.
“There is no certainty that any takeover will result from those discussions.”
Northwest in May agreed to buy Meridian’s Lennard Shelf lead and zinc project in Western Australia for $78 million, but that agreement has now been terminated.
Meridian, which had only $9.9 million cash on hand at the end of May, also on Wednesday said it sought to raise up to $6.8 million via a rights issue of new shares.
Drilling at Lennard Shelf, which Meridian describes as one of the largest undeveloped lead-zinc projects in Australia, has been suspended until the capital raising is complete.
Tags: Takeover