Singapore’s Lion-Asia resources has launched an all-cash takeover offer for iron ore producer Polaris Metals (ASX:POL).
Lion-Asia’s offer is superior to an existing bid from Mineral Resources, Polaris said today.
The $0.70 per share cash bid is a 6% premium on the implied value of the Mineral Resources offer, and has the added advantage of ensuring a cash payout to shareholders, Polaris said in a note to investors.
But Polaris stopped short of recommending shareholders accept the offer, instead urging a 'wait and see’ strategy.
The bid is conditional on a plurality of shareholders taking the offer, and investors which have already accepted the Mineral Resources offer will not be able to terminate their agreement.
Polaris shares have jumped more than 10% following the announcement of the offer, and are now trading at $0.74.
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