MONTREAL – Quebec-based miner Semafo (TSX:SMF) is making an unsolicited takeover bid for Australian-listed Orbis Gold Ltd. (ASX:OBS) in a move that would value company’s almost 250 million shares at more than A$162 million.
Semafo says it will pay 65 Australian cents per share in cash for 100 per cent of Orbis shares subject to a number of conditions, including that shareholders reject a proposed US$20-million private placement arrangement with Greenstone Resources at a price of 42 Australian cents per share.
The minimum acceptance condition is 50.1 per cent, it says.
Both Semafo and Orbis have assets in the West African country of Burkina Faso.
Orbis announced last month that the Greenstone placement was in the best interest of shareholders, subject to there being no superior proposal, something Semafo says its bid now represents.
However, Orbis says the bid for the entire company “significantly undervalues” it both in terms of “existing assets and the potential value the company expects to deliver to its shareholders in the near future.”
Semafo says that if Orbis shareholders reject the Greenstone arrangement, it will prepare and submit its bid shortly afterward.