DIAMOND PAGE — Namibian poised to acquire Ocean Diamond

Namibian Minerals (NMR-T) has made formal its takeover bid for Ocean Diamond Mining Holdings, a fellow marine diamond miner listed on the Johannesburg Stock Exchange.

Namibia, which announced its intention in early September, already owns a 34% equity stake Ocean Diamond and has an option to acquire an additional 17%. Under South African law, an offer to minority shareholders is required when a company acquires more than 35% of another company’s outstanding shares.

The offer, fixed at 8.25 rand per share, includes 50% in cash and 50% in Namibian shares priced at US$4 each. Alternatively, shareholders can elect for an all-cash offer, also priced at 8.25 rand per share.

Namibian has secured the US$41 million needed and says its offer pegs Ocean Diamond’s total value at US$63 million. The financing consists of US$25 million in secured debt and US$16 million from institutional investors.

Ocean Diamond is the third-largest producer of marine diamonds and holds 27,000 sq. km of marine concessions off the western coasts of Namibia and South Africa.

If the takeover succeeds, Namibian Minerals’ holdings would quadruple and its rank as the world’s second-largest producer of marine diamonds would be solidified.

The offer expires Oct. 26 but could be extended.

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