South Africa’s AngloGold (AU-N) has extended by a week its offer for Normandy Mining (NDY-T) in an attempt to prevent rival Newmont Mining from gaining total control of the Australian miner.
Under Australian corporate law, Newmont needs to have more than 90% of Normandy’s shares tendered to its offer in order to compulsorily acquire the rest of the company.
At the close of business in Australia on Jan. 11, AngloGold had received acceptances for 146.3 million or 6.5% of Normandy’s issued capital. Anglo’s offer now expires at 7 p.m. Sydney time on January 18, 2002.
Anglo says the extra time will give Normandy shareholders the fullest opportunity to consider the offer in the light of market information and recent share price movements.
AngloGold’s CEO, Bobby Godsell, said, “The two bids have only recently come together, presenting Normandy shareholders with a difficult decision. It’s our judgment that they need a little more time to consider the competing value propositions and process their acceptances. I am keen, however, to bring this matter to a conclusion as soon as possible.”
By the end of the trading session on the New York Stock Exchange on Jan. 10, Anglo’s bid was just A2 behind Newmont’s.
Anglo’s offer includes 2.15 AngloGold shares for every 100 Normandy shares plus A30 cash for each Normandy share tendered. Newmont is offering 3.85 treasury shares for every 100 Normandy shares plus A50 per Normandy share. Newmont’s bid closes at 7 p.m. on Feb. 15. Franco-Nevada Mining has committed their 19.9% stake in Normandy to Newmont’s offer.
On Thursday, Newmont announced that the United States Securities and Exchange Commission (SEC) had cleared its bid for Normandy enabling Normandy shareholders in the United States and Canada to accept the offer.
Neither side has plans to up their respective bids.
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