Discovery Metals Limited’s (ASX:DML)
Chinese suitors are pushing ahead with their $830 million takeover bid. The Africa-focussed copper explorer and producer received and rejected an indicative and non-binding proposal of $1.70 per share from Cathay Fortune Corporation and China-Africa Development Fund earlier this month.
Though Discovery Metals board continue to insist the offer undervalues the company the suitors yesterday stated their intention to make an off-market bid.
The suitors believe the offer represents value at a time when there is significant uncertainty over the costs and expansion of Discovery’s wholly owned Boseto Copper Project.
Shares in Discovery Metals closed 4.85 per cent higher at $1.73 following the announcement yesterday.
Discovery Metals posted a net loss of $20.7 million in the 2012 financial year.