LA Private

Perseus increases offer for OreCorp

East African gold miner Perseus Mining (ASX:PRU) has lifted its mooted offer for OreCorp in a conditional off-market proposal revealed on Wednesday and snagged the support from two major shareholders in the target company.

The two major shareholders, controlling more than 15% of OreCorp, say they will now accept the higher offer if it becomes a takeover bid (once all the nuts and bolts of the bidding procedures are completed).

Their switch of support for Perseus could prove pivotal.

Perseus says it will increase its cash offer to 57.5 cents a share from 55 cents a share pending OreCorp’s board recommendation to shareholders to accept the offer in the absence of a superior proposal, from the other suitor, Silvercorp Metals.

The proposed higher price values OreCorp at around $270 million.

Silvercorp now has five business days to provide OreCorp with an increased offer.

OreCorp’s board intends to recommend that shareholders accept the Perseus bid in the absence of a superior proposal, according to the filing.

The company also said that it has received Intention Statements from each of Messrs Tim Goyder and Nick Giorgetta (the two major shareholders) stating their intention to accept the Amended Proposal in respect of all of the OreCorp Shares they and their associates own or control, if the OreCorp Board Recommendation is provided and the Amended Offer becomes capable of acceptance”

Mr Goyder controls 5.14% of OreCorp while Mr Giorgetta controls 10.47%, making a total of 15.61%.