New offer turns Consmin board again

Leaks from bidder Privat Group that the group’s subsidiary Palmary Enterprises would increase its bid for Consolidated Minerals (CSMBF-O, CNM-L, CSM-A) have proved to be true, and the Consmin board has changed its recommendation accordingly.

Palmary increased its cash bid to A$4.50 per share, valuing Consmin at A$1.2 billion ($1 billion or US$999 million). That represented an increase of A45 per share over its previous bid.

The rival bid from the Pallinghurst Investor consortium, led by Pallinghurst Resources Fund and coal producer AMCI, was A$4.10 (valuing Consmin at A$1.1 billion), and the Consmin board had recommended that bid to shareholders in the absence of a superior bid. The Pallinghurst bid contained a provision for the bidder to pay the difference between its bid and any superior bid that appeared before Sept. 27.

A cash-and-shares bid from Territory Resources (TTY-A) offering 1.5 Territory shares and A$2 for each Consmin shares is moving further out of the picture, as Territory shares fell to A88 on the Australian Securities Exchange, leaving the offer at A$3.32 per share, equalling A$878 million.