Paladin Resources has acquired 58% of the shares in Summit Resources, taking management control of the company. Paladin's takeover offer has been recommended by Summit and has been extended by two weeks.
听
By the anticipated close of the offer period on 27 April, Paladin had received acceptances for 58.21% of issued capital of Summit.
As a result of Paladin's voting power in Summit increasing to more than 50%, Paladin's A$1.14 billion ($942 million) takeover offer for Summit has automatically been extended by 14 days until 11 May.
听
Summit's board of directors reconfirmed its earlier advice that Summit shareholders should accept Paladin's offer.
听
In February, Paladin launched a hostile takeover bid for Summit with the aim of bringing several prospective properties under Paladin's full ownership. However, shortly afterwards, Summit announced that it had entered into a strategic alliance with Areva whereby the French company would buy 9% of Summit, with the option of taking up to 18%. Summit has since said that the agreement with Areva will not proceed. Last week Areva announced that it held 10.46% of Summit.
听
Areva's stake in Summit is, however,听sufficient to block Paladin proceeding with a compulsory acquisition of Summit were it to win the support of the rest of the company's shareholders.
听
Further information
听
听
WNN:听WNN:听
_69614.jpg)
