CBH Sale Rumours
Wednesday January 20, 2010
CBH Resources, which owns Cobar’s Endeavor Mine, has confirmed it has been approached by Nyrstar NV with a $220million buyout offer.
Speculation in national media has been rife for a number of weeks, forcing both parties to recently release a statement on the matter.
CBH company secretary Stephen Lonergan said the proposal was “conditional, confidential and incomplete” meaning there was no obligation to report the matter.
Nyrstar NV, a global multi-metal company listed on the New York Stock Exchange Euronext Brussels, also released a statement about the proposal “regarding the ownership of CBH”.
“Nyrstar’s approach was made on December 18 2009 when it presented CBH with a confidential, conditional and non-binding proposal outlining a potential transaction,” the company’s statement said.
CBH Resources saiAd it has appointed a consultant to consider the offer on its behalf.
Nyrstar’s proposal is to complete the acquisition through the purchase of CBH shares for cash or in exchange for Nyrstar shares, at a price of 13.5cents per CBH share.
The proposal is conditional upon Nyrstar acquiring all of CBH’s convertible notes at no more than $750 each, as well as due diligence, a period of exclusivity and an agreement between the companies.
Mr Lonergan said CBH’s advisors have completed some of the detailed financial work required to assess the offer, and is currently providing recommendations on the proposal.
CBH also responded to speculation about an offer from Perilya Limited.
“The company advises it has not been approached by Perilya in relation to any similar proposal which could lead to a change of control transaction,” Mr Lonergan said.
Next story | News home
.jpg)