- Written by ASIA Miner News
FerrAus Limited has received an unsolicited, conditional proposal from a wholly-owned subsidiary of Wah Nam International Holdings to acquire all of the ordinary shares not currently held by Wah Nam, by way of an off market takeover offer.
The terms of the Offer are six Wah Nam shares for each FerrAus share, which implies a value of about Aus$1.30 per FerrAus share. The FerrAus board has advised shareholders to take no action, nor make any decision in relation to their shareholding until the board has received and had an opportunity to consider, Wah Nam's offer.
FerrAus is a junior exploration company with its focus on the discovery and production of ferrous raw materials, including iron ore, manganese, and nickel.
The company has four exploration licences in the East Pilbara region of Western Australia with excellent potential for iron ore and manganese deposits.
Another Pilbara iron ore player Brockman Resources has also recently received a conditional off-market takeover offer from the Hong Kong-listed Wah Nam, which aims to form a major Pilbara iron ore business.
Wah Nam currently owns 19.9% of FerrAus and 23% of Brockman.
Bidder’s statements for both offers have been lodged with the Australian Securities and Investment Commission.
In the statements, Wah Nam says it has no intention of making any significant changes to the business operations or company structures, but is focused on combining management teams and skill sets to develop Brockman’s Marillana project and FerrAus’ Pilbara project.