Paladin acquires 58% of Summit
Paladin Resources has acquired 58% of the shares in Summit Resources, taking management control of the company. Paladin's takeover offer has been recommended by Summit and has been extended by two weeks.
By the anticipated close of the offer period on 27 April, Paladin had received acceptances for 58.21% of issued capital of Summit.
As a result of Paladin's voting power in Summit increasing to more than 50%, Paladin's A$1.14 billion ($942 million) takeover offer for Summit has automatically been extended by 14 days until 11 May.
Summit's board of directors reconfirmed its earlier advice that Summit shareholders should accept Paladin's offer.
In February, Paladin launched a hostile takeover bid for Summit with the aim of bringing several prospective properties under Paladin's full ownership. However, shortly afterwards, Summit announced that it had entered into a strategic alliance with Areva whereby the French company would buy 9% of Summit, with the option of taking up to 18%. Summit has since said that the agreement with Areva will not proceed. Last week Areva announced that it held 10.46% of Summit.
Areva's stake in Summit is, however, sufficient to block Paladin proceeding with a compulsory acquisition of Summit were it to win the support of the rest of the company's shareholders.
Further information
Paladin Resources
Summit Resources
WNN: Areva fights back for Summit
WNN: Summit recommends Paladin bid
