Fri, 25 Aug 2017 | ADMINISTRATION
A British mining firm is waiting to hear how its operations will continue after opting to fall into administration rather than accept a takeover bid from a minority shareholder in what is thought to be a UK first.
Asa Resource, which owns nickel, diamond and copper mines across sub-Saharan African but is listed on the Aim stock exchange and headquartered in London, appointed Duff & Phelps as administrators on July 30.
After Asa’s capital reserves ran dry, they received a $35.5 million (£27.7 million) takeover bid from Rich Pro Investments (RPI), a Chinese investment vehicle which owns a 4 per cent stake in the mining firm, on July 12.
Though the price offered put a 65 per cent markup on Asa’s share trading price, RPI says the miner failed to enter a conversation and opted instead to hand itself over to administrators.
The UK’s Takeover Panel has ruled that the company is not in an offer period as insolvency laws have taken precedence. It is widely reported that this is the first time a company has gone into administration despite receiving a takeover bid: normally, companies would accept any offer - even if too low - in order to protect shareholders’ interests.
Though RPI is now permitted to abandon its bid under Takeover Panel rules, the investor has told Duff & Phelps it is still keen to buy Asa, and has tabled a $40 million loan to keep the mining firm running on the condition that its board is reinstated.
Investors have until August 29 to accept RPI’s offer, which has the firm backing of 38 per cent of Asa’s other shareholders, with no other barrier to the deal other than the presence of administrators.
RPI has said that the incident could set “a dangerous precedent whereby a board can block an offer… ahead of the interests of shareholders.”
Asa Resource Group plc in administration
Subscribe to Business Sale Report
Modern convenience store, lucrative Weymouth trading position, fronts busy thoroughfare, opposite railway station, close taxi rank, bus stops, and seafront/esplanade/beach, surrounded by residential areas and hotel/holiday accommodation, short walk t...
LEASEHOLD
Specialising in traditional Peking and Cantonese cuisine, the restaurant has gained an exceptional reputation and large customer base comprising locals and those from further afield since it opened in 2010. Tastefully decorated premises. All equipmen...
LEASEHOLD
Please note this is an accelerated process. All offers are to be received by 3pm Thursday 30 January 2020. Leading Independent Supplier of Genuine, O.E. and Aftermarket Ford Parts.
|
28
|
|
Jan
|
Fairstone completes double acquisition | BUSINESS SALE
Tyne and Wear-based consolidator Fairstone Financial Managem...
|
27
|
|
Jan
|
Amigo founder puts company up for sale | BUSINESS SALE
Amigo founder James Benamor has put the subprime lender up f...
|
24
|
|
Jan
|
Hawkin’s Bazaar enters administration | ADMINISTRATION
Norwich-based novelty toy retailer Hawkin’s Bazaar has...
Sign up to receive our acquisition alert emails to get your FREE guide
|
05
|
|
Feb
|
Furnishings company enters administration | ADMINISTRATION
Burnley-based manufacturer and designer of home furnishings,...
|
02
|
|
Feb
|
High street wine retailer Oddbins enters administration | ADMINISTRATION
Off-licence chain Oddbins has gone into administration. Its ...
|
22
|
|
Jan
|
Jewellery retailer enters administration | ADMINISTRATION
A Nottingham-based jewellery and watches company has fallen ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources