Dec. 12 (Bloomberg) -- Wah Nam International Holdings Ltd., a Hong Kong-traded limousine provider and copper producer, offered about A$196 million ($199 million) to buy the remaining shares of Brockman Resources Ltd. it doesn’t own.
Wah Nam, Brockman’s largest shareholder with a 55.3 percent stake, plans to pay A$1.50 in cash and 18 Wah Nam shares, valuing the deal at A$3.03 for each Brockman share, the companies said today in a joint statement. The offer is 34 percent more than Brockman’s A$2.26 closing price on Dec. 9.
The offer by Wah Nam follows its A$497 million acquisition of Nedlands, Australia-based Brockman’s shares in May. Buying Brockman gives Wah Nam full control of the Marillana iron ore project in the Pilbara region of Western Australia.
“Consolidation should improve funding options to develop Brockman’s Marillana iron ore project,” Brockman said. The “offer provides immediate value certainty via the A$1.50 cash component as well as exposure to the potential upside of the Marillana iron ore project via the 18 Wah Nam shares scrip component.”
Brockman’s independent directors unanimously recommended the Wah Nam offer in the absence of a superior proposal, the company said in the statement.
--Editors: Indranil Ghosh, Aaron Sheldrick
#<640807.9032220.127.116.11.14779.25># -0- Dec/12/2011 08:03 GMT
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