Mineral sands producer Mineral Deposits has told bidder, Eramet, the French mining group, to go away despite a higher offer price.
Mineral Deposits told shareholders to reject the increased takeover bid from French saying that it continued to undervalue the company.
Eramet increased its all-cash offer for Mineral Deposits to $1.75 a share from $1.46 per share previously. That saw the shares rise 2.6% to $1.75.
Eramet declared the revised offer as final, meaning no more increases.
MDL Chairman Nic Limb said in the statement from Mineral Deposits:
“While the Board welcomes an increase in the offer price, your Directors maintain their view that the Revised Offer still does not reflect the true value of the Company.
"The Board believes the Revised Offer continues to undervalue MDL’s shares, where its joint venture assets are operating at or near current capacity as the mineral sands commodity cycle continues to improve.”
The Revised Offer has been declared by Eramet as last and final, in the absence of any alternative or competing proposal, and will remain open until at least 13 July 2018 (unless extended or withdrawn).
Eramet’s higher offer values Mineral Deposits at $344.7 million, with $322 million for the shares it did not already own in the company.
The acquisition would enable the full consolidation of the TiZir joint venture, in which each company has a 50% stake.
The TiZir joint venture comprises two integrated, producing assets – the Grande Côte mineral sands operation (GCO) in Senegal, West Africa and the TiZir Titanium & Iron ilmenite upgrading facility (TTI) in Tyssedal, Norway.
