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Blumont makes takeover offer for Genesis Resources, plans to pay by issuing new shares

Published on Jan 24, 2014 9:15 AM

Blumont Group has agreed to make an off-market takeover bid for Australia-listed mineral exploration and development company Genesis Resources, the group said on Friday.

Singapore-listed Blumont will offer 16.9 Australian cents (19.1 cents) for each Genesis share, paying a premium of about 87.8 per cent above the volume-weighted average price of Genesis shares on Wednesday.

Blumont will pay for the takeover by issuing up to 509.5 million new shares, representing about 16.5 per cent of its enlarged share capital.

It will offer 5.3 shares at 7.19 cents apiece for every two Genesis shares. The implied issue price of the Blumont shares represents a premium of 1.27 per cent to the closing price of its shares on Thursday.

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