Lion-Asia this morning announced that it has applied to the Australian Securities (ASIC) and Investment Commission for relief to waive the 50.1% minimum acceptance condition in relation to its offer for Polaris Metals.
The move is believed to be an attempt to by Lion to make its $123 million cash bid for Polaris declared unconditional before Mineral Resources’ opposing mostly scrip bid closes on Wednesday.
Lion said it expects a response from ASIC by the end of today, with industry speculation suggesting the relief will be granted, enabling Polaris shareholders a more certain choice between the two bids.
Lion is offering 70 cents a share for Polaris, while mining contractor Mineral Resources is offering 5 cents cash and one-tenth of one of its shares for every Polaris share, which amounts to a bid valued at 76.3 cents based on Friday’s closing share price.
In a protracted sale period, Polaris has recommended the Mineral Resources bid and Heron Resources has agreed already to sell its 19.9 per cent stake in Polaris into that bid.
If ASIC waives the 50.1% minimum, both bids will be unconditional.