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Highlights
- Musgrave Minerals (ASX:MGV) has entered into a bid implementation agreement (BIA) with Ramelius Resources (ASX:RMS) .
- As per the agreement, RMS will offer to buy out all the issued ordinary MGV shares through a cash and scrip off-market takeover offer.
- MGV has been offered 1 RMS share for every 4.21 MGV shares held and AU$0.04 in cash for every MGV share held
Australian gold exploration company Musgrave Minerals Ltd (ASX: MGV) has entered into a bid implementation agreement (BIA) with Ramelius Resources Limited (ASX:RMS). As per the agreement, Ramelius would offer to acquire all the issued ordinary shares of MGV through a cash and scrip off-market takeover offer.
Triggered by the ASX announcement, the company shares traded in green at AU$0.335 with over 17% jump from the last closing price, at the time of writing on 3 July 2023. The company has a market cap of over AU$168 million.
In-depth details of the offer
Under the terms of the recommended offer, Musgrave shareholders will get one RMS share for every 4.21 MGV shares held and AU$0.04 in cash for every MGV share held.
The offer consideration values each MGV share at AU$0.34, on the basis of the 1-day volume weighted average price of RMS shares on 30 June 2023 of AU$1.263, and implies an undiluted equity value for MGV of ~AU$201 million. Under the offer, Musgrave shareholders will own about 12.4% of the combined company.
Support from Musgrave Board and Major Shareholders
The Directors of Musgrave have unanimously recommended that MGV shareholders accept the Ramelius offer, in the absence of a superior proposal. Also, Musgrave Directors have inked binding pre-bid agreements for the 2.43% of Musgrave shares on issue, accepting within 5 days after the offer opens.
Notably, MGV’s largest shareholder, Westminex Pty Ltd, has also supported the offer by entering into pre-bid agreements for 9.70% of Musgrave shares on issue.
Data source: company update
