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PanAust Limited receives increased indicative takeover proposal


PanAust Limited (ASX:PNA) should trade substantially higher after it attracted an increased $2.30 takeover bid from Guangdong Rising Assets Management, a 23% shareholder in PanAust.

On 10 April 2014, PanAust received a confidential, non-binding, indicative and incomplete proposal from Guangdong to acquire all of the shares in the Company by way of an off-market, all cash takeover offer at $2.20 per share.

The Proposal included a number of conditions including Chinese and Australian regulatory approvals and 50.1% minimum acceptance.

In subsequent discussions, Guangdong proposed a revised indicative offer price of $2.30 cash per share, however PanAust has written to GRAM advising that this price remains materially below the level at which the Board would be prepared to recommend a takeover offer to its shareholders.

The Company has agreed to permit GRAM access to due diligence information upon execution of an appropriate confidentiality agreement, to assist it to materially improve its indicative offer price.

At this stage, there is no takeover offer that is capable of acceptance by shareholders, however PanAust will continue to keep the market updated as appropriate.

Late last year, PanAust revised the life of mine plan for its Phu Kham copper-gold operation in Laos, with annual copper in concentrate production now forecast to increase to 90,000 tonnes in 2018.

The outlook to 2015 remains unchanged from that announced in February 2013 with copper in concentrate production of between 65,000 tonnes and 70,000 tonnes in 2014 as the operation benefits from a full year of the increased recovery project.

Subsequently, between 2016 and 2019 increasing head grades will cause copper in concentrate production to rise to peak levels of around 90,000 tonnes per year in 2018 and 2019.

Gold grades are forecast to be variable, with production from 60,000 ounces to 80,000 ounces in concentrate through to to 2020.


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