CBH considering approach

CBH Resources has confirmed reports of a possible takeover bid.

Australian zinc and lead producer CBH Resources has this morning confirmed media speculation that that it is considering a proposed $147.8 million takeover offer from Belgium zinc producer Nyrstar.

According to CBH, the proposal, which values the company at 13.5 cents per share, is conditional, confidential and incomplete.

CBH said Nyrstar’s proposal is conditional on the acquisition of its convertible notes at no more than $750 per note, with consideration in either cash, Nyrstar shares or Nyrstar convertible notes.

The transaction is also conditional upon Nyrstar completing due diligence and definitive documentation, an implementation agreement and Nyrstar board approval.

CBH also took the opportunity to deny further media speculation that it had been approached by Perilya in relation to a buyout proposal.

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