Delhi-based Bhushan Steel has launched a takeover bid of A$8.16 million (R35.5 crore) for exploration minnow Bowen Energy, according to reports.
Bhushan Steel, Bowen Energy’s largest shareholder, said it had made an unconditional 10 cents cash-per-share- on-market takeover bid for the exploration firm, which is exploring the Queensland basin after which it is named.
Bowen’s shares jumped 4.9 cents, or 87.5 per cent, to 10.5 cents — eclipsing the offer price and suggesting the market expects a higher bid, although the share trading was low volume. Bhushan said its offer represented a 79 per cent premium to Bowen’s closing share price of 5.6 cents on Monday.
“The offer price is well above the preferred value of the shares (five cents per share) determined by Deloitte Corporate Finance Pty Ltd, the independent experts engaged by the company in October 2009,” Bhushan said in its bidder’s statement on Wednesday. “The offer price represents a generous premium, having regard not only to the company’s share price and preferred value, but also to the fact that Bhushan already owns 59.64 per cent of the company.”
However, Bowen Energy is yet to respond to Indian company’s offer.