St. Genevieve renews offer for common shares of Louvem

A proposed offer to boost its interest in Louvem Mines to about 90%, through the purchase of up to 4.8 million common shares of the gold producer, is going ahead, St. Genevieve Resources has announced.

St. Genevieve, which currently owns about 56.5% of the common shares of Louvem, reported in February it would make a bid to purchase the outstanding balance of the shares of Louvem it did not already own. The company the n reported at the beginning of this month it was reconsidering the terms of its offer.

It now reports that, subject to regulatory approval, it will proceed with a takeover bid on the Montreal Exchange to acquire a maximum of 4.8 million common shares of Louvem, representing about 33% of the total number of Louvem’s issued and outstanding common shares, at $1.50 per share.

While the original takeover offer was conditional upon the tendering of at least 90% of Louvem’s common shares and 90% of its series A preferred shares, St. Genevieve now says it is seeking to purchase only the common shares.

Meanwhile, Louvem, in a statement signed by President P. Andre Lacroix and released through the offices of a Montreal law firm, says the price of $1.50 per share is “insufficient.”

In other news, St. Genevieve has signed a public bond issue and exchange agreement with a consortium of Swiss banking institutions, represented by Banque Indosuez of Geneva as lead underwriter, which will raise about 50 million Swiss francs, or about $45 million (C), through the issuance of 5 5/8 % convertible bonds of St. Genevieve due May 3, 1993.

The conversion price for the bond issue has been set at $2.27 per common share of St. Genevieve.

In addition, holders of the first tranche (issued in 1987) of 25 million Swiss francs (about $22.25 million) 5 7/8 % convertible bonds due Aug 5, 1992, shall have the option until April 5, 1988, to convert the existing bonds into new bonds at par.

Shareholders will vote May 2 on the bond issue, which is subject to regulatory approval; closing of the bond issue is scheduled for May 3.