Ramelius Resources (ASX:RMS) has officially acquired more than 90% of the shares in Musgrave Minerals (ASX:MGV), meaning it will now move to compulsory acquisition of all remaining Musgrave shares.
Under the Corporations Act, a shareholder that controls more than 90% of a company can move to compulsorily acquire the remaining interest and grab full control of the investee. This is precisely what Ramelius plans to do as its Musgrave buyout comes to a close.
This means any Musgrave shareholders who did not accept the Ramelius offer before 7:00pm AEST on Friday 15 September will now have to wait until after the compulsory acquisition process to receive their offer consideration, which Ramelius says will likely take over a month.
In any case, the compulsory acquisition rounds off Ramelius’ takeover process, which began in early July.
Under the bid, Ramelius offered Musgrave shareholders one RMS share for every 4.21 MGV shares held, plus an additional $0.04 per share in cash per MGV share held. This valued Musgrave shares at a 19% premium to its closing price before the bid and a 54% premium to its 60-day volume-weighted average price.
The Ramelius offer also overshadowed a takeover attempt from Westgold Resources (ASX:WGX), which offered one WGX share for every 5.37 MGV shares. Once Ramelius made its offer, Westgold threw in the towel and walked away from the takeover.
Musgrave’s Cue Gold Project in Western Australia was the catalyst for the buyer interest.
Ramelius’ compulsory acquisition move comes alongside news that the company’s mine development remains on track at its Penny gold mine, with the seventh ore drive level ‘well-advanced’.
Ramelius has been producing gold since 2006, and it owns a string of gold mines — Mt Magnet, Edna May, Marda, Tampia, and Penny — across Western Australia.
Over the past two years, Ramelius has completed several takeovers of other listed gold miners, including Apollo Consolidated, Breaker Resources, and, now, Musgrave Minerals.
Write to Joshua Smith at Mining.com.au
Images: Ramelius Resources
