South African gold miner Durban Roodepoort Deep (DRD) on Wednesday announced that it has lodged a second supplementary bidder’s statement in relation to its hostile takeover bid for Australia’s Emperor Mines.
A copy of the second supplementary bidder’s statement is available on DRD’s website. The statement supplements — and should be read together with — DRD’s bidder’s statement dated March 26 2004 and DRD’s first supplementary bidder’s statement, dated May 4 2004, DRD said.
DRD is currently offering Emperor Mines shareholders one DRD share for five Emperor Mines shares held. The company’s offer closes on Friday June 11 2004. DRD currently has a 21% stake in Emperor Mines.
At DRD’s prevailing share price of R17 on the JSE Securities Exchange South Africa on Wednesday, the offer values Emperor’s share of Aus$0,72, exactly the same as Emperor’s previous closing price on the Australian Stock Exchange.
However, an independent expert’s report by Deloitte Corporate Finance has recommended to Emperor shareholders that DRD’s offer is neither fair nor reasonable. Deloitte has valued Emperor at between Aus$1 and Aus$1,32 a share.
Emperor MD Gregg Starr has also been quoted as saying that DRD’s offer is too low.
The Australian-listed gold miner owns the Emperor gold mine located at Vatukoula in Fiji. The Emperor gold mine produces about 130 000 ounces of gold annually.
DRD’s bid for Emperor is part of its strategy to decrease it dependence on its marginal South African gold mines and increase its Australasian gold-mining interests. — I-Net Bridge