If the offer is approved, the two companies would emerge as Australia’s fourth largest gold producer with a total output of about 400,000 oz annually. Dominion is also based in Australia.
Under the revised offer, shareholders of Whim Creek can receive either two Dominion shares for each Whim Creek share without special and ordinary 10 cents dividends or nine Dominion shares plus $1.25(A) cash for every five Whim Creek shares.
The shares plus cash offer includes the special, but not the ordinary dividend.
Dominion says it has been advised that the revised offer, valuing Whim Creek shares at $2.90 including dividends at Dominion’s closing price on April 14, has been unanimously recommended by Whim Creek directors.
In the previous offer, valued at $220 million, Dominion bid nine of its own shares for every five Whim or eight Dominion shares and $1.25 cash for every five Whim Creek shares.
The nine-for-five offer entitled Whim shareholders to both special and ordinary dividends while the eight Dominion plus cash bid included the ordinary but not the special 10 cents payment.
“Given constant conditions, there are expected to be significant market re-rating benefits for both Whim and Dominion shareholder,” said Dominion Chairman Peter Joseph. “The (proposed) new group will have little debt, a simple structure and a challenging new generation of opportunity,” he said. Dominion currently holds a 31.2% stake in Whim Creek.
The revised offer is scheduled to expire May 26.
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