Big profits to be made in this foreign auction of PNG resources – but none of that money will filter back to PNG…
PanAust Rejects New A$1.1 Billion Guangdong Offer as Too Low
James Paton | Bloombeg
PanAust Ltd. rejected a new bid from China’s Guangdong Rising Assets Management Co. that valued the copper producer at A$1.1 billion ($840 million) as too low.
Guangdong Rising, PanAust’s largest shareholder, should pay more than A$1.71 a share if it wants to boost its ownership, the Brisbane-based company said Wednesday. PanAust rose as much as 0.9 percent to A$1.755 in Sydney trading.
“With PanAust’s share price now trading above the GRAM offer price, it suggests that the market also agrees with this view,” according to the statement. The PanAust board is open to talking with the state-owned Chinese investor to determine whether the two sides can agree on a price, the company said.
Guangdong’s cash offer, 40 percent higher than PanAust’s share price before the bid last month, is “unconditional and not subject to the board’s recommendation,” the Chinese company said in a separate statement.
The cash bid in March was unsolicited and made when both the producer’s shares and copper and gold prices were trading at or near five-year lows, PanAust said at the time.
PanAust, seeking to develop one of the world’s largest undeveloped copper and gold deposits at Frieda River in Papua New Guinea, last year rejected Guangdong Rising’s previous offer of A$2.30 a share.