Focus zooms in on Crescent

OUT AND ABOUT: The buzz coming from the Diggers & Dealers conference booth of Goldfields gold producer Focus Minerals is that it has received enough acceptances for its takeover bid for Crescent Gold to claim a majority of the issued shares of the target company.

Focus’ relevant interest in Crescent has increased to 51.32%, which it says puts it in a very strong position as the prospect of a rival offer emerging is now considered to be unlikely.

Focus has advanced $6 million of a $10 million working capital facility and further drawdowns are scheduled to be advanced in early August.

The loan is repayable in full in the event shareholders fail to approve the conversion of the loan at a meeting scheduled for 18 August or if another, superior proposal pops up.

On 20 June 2011 Focus and Crescent

The two companies announced an agreement to merge by way of an off-market takeover offer for Crescent by Focus in June.

The offer on the table is one Focus share for every 1.18 Crescent shares, representing a 30.5% premium based on the closing prices of Crescent shares and Focus shares on the last trading day prior to the announcement of the offer.

The offer closes on 15 August, unless it needs to be extended.

The Crescent board has unanimously recommended its shareholders should accept the offer, in the absence of a superior proposal.

The Crescent board members have led by example with all providing acceptances in respect of shares held or controlled by them.

The offer has also received the nod from Crescent’s major shareholder Gulara, a wholly owned
subsidiary of Deutsche Bank, which entered into a pre-bid agreement for 19.99% of
Crescent shares on the last trading day prior to the announcement of the offer.