EXU - Explaurum Limited

• at Ramelius' request, the Explaurum Board met with senior Ramelius executives last week to better understand Ramelius' proposal and to explore the potential benefits of a merger for Explaurum and Ramelius shareholders. Ramelius declined to provide meaningful information and the meeting participants agreed that those discussions would continue. Accordingly, Explaurum is surprised and disappointed that Ramelius has proceeded with its announcement before completing any meaningful engagement;
• the proposed consideration is inadequate and undervalues Explaurum's underlying assets and future prospects;
• the timing of the offer appears opportunistically timed to take advantage of the current share price before Explaurum completes its bankable feasibility study and provides that information to the market; and
• the proposed scrip consideration does not provide the same certainty of value or risk profile as cash consideration and would careful diligence and valuation.

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greggles said:

Ramelius Resources have upped their takeover offer for EXU by 5c a share, so the consideration is now one Ramelius share for every four Explaurum shares plus 5c per Explaurum share. This updated offer values Explaurum at 15.25c per share, much better than the 12.3c a share valuation in the original offer made two months ago.

RMS seem determined to acquire EXU despite the latter's resistance. The offer is now extended to 21 December 2018. It almost seems like a foregone conclusion that the takeover will go ahead, but anything can happen between now and 21 December.

EXU is up 13.6% to 12.5c today after the updated takeover offer was announced.

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