Mining firm chooses administration over takeover in ‘UK first’

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


Share this article



Latest Businesses for Sale

Major Innovator of Job Search Technology & Related Platforms
East of England, UK

One of the top job search portals - developed in-house - with over 1m UK-based vacancies available from employers operating in nearly all sectors across the UK. Also develops & operates a series of complementary platforms & mobile apps for use within...

Asking Price: Offers Invited
Turnover: £3,400,000

Supply of Flanges, Butt Welds & Machining
UK Wide

Manufacture and supply of high quality, hard metal, flanges and butt welds with machining services. Enviable reputation. Niche offering. Long standing relationships with suppliers. In-house manufacturing capabilities. Diverse client base including m...

Asking Price: Offers Invited
Turnover: £1,100,000

Road Surfacing & Civil Engineering Contractor
Scotland, UK

Public and private sector road surfacing and civil engineering contractor with a prestigious Royal Warrant for Road Maintenance. Provides roadworks, groundworks and civil engineering services. Diverse customer base including Royal Estates, local auth...

Asking Price: Offers Invited
Turnover: £3,800,000


View more businesses for sale

News Search

Latest News

 
19
 
Jan
 

Luxury lodging group enters administration | ADMINISTRATION

An Essex-based company which operates eight luxury lodge par...

 
17
 
Jan
 

Fine paper business enters administration | ADMINISTRATION

Arjowiggins UK, which operates a number of trading companies...

 
15
 
Jan
 

Hawk Plant enters administration | ADMINISTRATION

The Shropshire company, that has previously undertaken landm...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
15
 
Dec
 

Two pub companies enter administration | ADMINISTRATION

Mitchell’s of Lancaster (Brewers) Limited and York Bre...

 
29
 
Aug
 

Printing providers on the market for sale | BUSINESS SALE

An advertisement for London-based digital and litho printing...

 
25
 
Jul
 

SP Group Limited enters administration | ADMINISTRATION

Based in Redditch in the West Midlands, SP Group Limited is ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources