Sovereign Gold proposes takeover of Precious Metal Resources

THE BOURSE WHISPERER; In a release to the ASX  today, the Board of Sovereign Gold has advised that it has entered into a binding Takeover Bid Implementation Agreement (TBIA) with Precious Metal Resources (PMR).

Subject to the terms of the TBIA, Sovereign Gold proposes to acquire all PMR ordinary shares not currently held by Sovereign Gold by way of an off‐market takeover bid.

Sovereign Gold is offering nine of its ordinary shares for every ten ordinary shares in PMR.

The bid is subject to a number of conditions including an 80 per cent minimum acceptance condition.

The offer, which implies a value of 25.2 cents for the PMR shares, represents a 14.55 per cent premium over the closing trading price of 22.0 cents for PMR; based on the closing price of 28.0 cents for Sovereign Gold shares on Monday, 9 July 2012.

All PMR Directors have stated that they intend to accept the Sovereign Gold offer in respect of any PMR shares they own or control, subject to an independent expert concluding that the offer is fair and reasonable to PMR shareholders and subject to there being no superior proposal and no material adverse event occurring in respect to Sovereign Gold.

The TBIA provides for, among other things, the exchange of confidential information that will assist Sovereign Gold to prepare a Bidder’s statement, which is planned to be lodged with the Australian Securities & Investments Commission and be sent to PMR shareholders in mid-to-late July 2012.