The board of Consolidated Minerals (CNM-L, CSM-A) has recommended an improved bid for the company from Belize-based Palmary Enterprises, a vehicle of Ukrainian businessman Henadiy Boholyubov.
Palmary, engaged in a protracted takeover battle with private Pallinghurst Resources, bumped its offer to A$4.70 per share. This would value Consmin at A$1.2 billion. The two bidders had been deadlocked at A$4.50, with Pallinghurst offering to match cash on any subsequent offer, but the Australian Takeovers Panel had ruled that the top-up offer was an unacceptable element of the bid.
Pallinghurst, which had been the initial friendly bidder when Consmin shopped itself around, released an announcement advising Consmin shareholders not to take any action on Palmary’s revised bid.
Consmin shares rose to A$4.95 on the Australian Securities Exchange following the increase to Palmary’s bid. When Consmin and Pallinghurst announced their initial arrangement in February, Consmin shares were trading at A$2.25.
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