Two Consmin offers tied at A$4.50

Both of the bidders for Australian alloy-metals producer Consolidated Minerals (CSMBF-O, CNM-L, CSM-A) are now offering identical cash bids for the company.

The Pallinghurst Investor group, made up of privately held Pallinghurst Resources and AMCI, upped its bid to A$4.50 per share on Oct. 12, to match a Sept. 12 offer from Palmary Enterprises, an arm of Ukrainian metal, manufacturing and banking conglomerate Privat Group. The bids value Consmin at A$1.2 billion ($1 billion or US$1.1 billion), based on a fully-diluted capitalization of 264.5 million shares; currently there are 229.6 million in Consmin’s float.

Pallinghurst, however, is reserving a supplementary payment for shareholders that accept its offer. If Palmary makes another bid Pallinghurst will match the cash those shareholders would have received had they held out for the later offer.

Pallinghurst also put final conditions on its offer, which is scheduled to close on Oct. 24 and which Pallinghurst cannot voluntarily extend. It has one escape clause, which is to match any offer made before the deadline.

Palmary, in response, made its offer for Consmin unconditional, waiving a set of standard takeover conditions. Its original offer had not placed an acceptance condition on the bid. But it has also moved against Pallinghurst’s offer at the Australian Takeovers Panel, charging that Palmary’s plan for a top-up payment is an “unacceptable circumstance” affecting the takeover bids.

Consmin’s board, which had recommended Palmary’s offer, is reviewing the Pallinghurst bid.

The third-place bidder, Territory Resources (TTY-A) dropped out of the race on Oct. 15, allowing its offer (1.5 Territory shares and A$2 per Consmin share) to expire. The offer had attracted 0.02% of Consmin shares.