Kin Mining NL (ASX:KIN) has welcomed an off-market takeover offer of $20.9 million from Genesis Minerals (ASX:GMD) Ltd to take over its 7.34% shareholding in Dacian Gold Ltd (ASX:DCN).
At the same time, KIN’s largest shareholder, Deutsche Balaton Group, will also accept Genesis Minerals (ASX:GMD)’ offer for its 3.22% shareholding in Dacian.
Overall, the two companies believe the offer delivers a significant return on the $10.7 million investment made some 12 months ago.
Details of the takeover offer
Genesis is offering the equivalent of $0.235 per Dacian share, equating to a transaction value of just over $20.9 million for Kin’s direct holding of 7.34%.
If a +95% share uptake is achieved prior to closing, Genesis’ offer will increase to just over $24 million for KIN’s shareholding.
Even at the original offer price, this deal presents a profit of $13.28 million after acquiring and holding the shares for only 12 months, about doubling Kin’s original payment of $0.12 a share or $10.7 million total.
Overall, Kin Mining’s board (and Deutsche Balaton Group) have unanimously approved the acceptance of the Genesis offer and has instructed its advisers to proceed with the transaction.