Monaco-based shareholder bids for Mintails

Monaco-based shareholder bids for Mintails 
PERTH ( − South Africa-focused tailings extractor Mintails has become the focus of a takeover by shareholder Seager Rex Harbour from Monaco.

Harbour, which owns a 13,82% interest in the company, on Friday announced an offer of 8c for every Mintails share. With around 100,7-million shares outstanding, the offer was valued at A$80,6-million.

“I have priced the offer consideration at a level I am happy to pay, and which I believe may be acceptable to Mintails shareholders,” Harbour said in his bidder’s statement.

He noted that Mintails shares had “regrettably’ performed poorly over the past three-and–a-half years, falling from a high of A$9,50 in June 2007, to the current trading price of around 7,9c a share.

“Accordingly, it is difficult to determine whether the current market price for Mintails shares reflect their true value,” Harbour said.

The ASX-listed Mintails has been trading at around 7,9c for the last two days, but share prices increased slightly to 8,1c a share on news of the possible takeover.

The takeover offer would close on April 29, and was not subject to any conditions.

Mintails owns the rights to process and extract gold from tailings resources on the West Rand of the Witwatersrand basin.