Sylvania Resources’s two takeover targets, Great Australian Resources and SA Metals, have advised their shareholders to take no action in relation to the scrip bids.
Sylvania produces platinum group metals in South Africa, where both SA Metals and Great Australian have PGM exploration projects.
The predator said today the companies had “complementary assets and focus, and combining these would provide a strong asset base in the PGM industry”.
Sylvania’s offer for SA Metals is one Sylvania share for every 10 SA Metals shares held, valuing the target at $25.4 million.
The offer for Great Australian is one Sylvania share for every 18 shares held in the target, valuing Great Australian at $5.9 million.
Both targets said they would discuss the offer with advisers and needed time to consider the forthcoming bidder’s statements before making a formal recommendation.
Sylvania has a 12.89 per cent stake in SA Metals and a 19.9 per cent interest in Great Australian.
Shares in SA Metals, formerly Pan Palladium, had soared 95.56 per cent to 8.8 cents by 12.11am while Great Australian shares had jumped 12.24 per cent to 5.5 cents.
Sylvania shares had inched one cent higher to $1.
from thewest
SLV Price at posting:
$1.00 Sentiment: Buy Disclosure: Held
