Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) is confident of receiving unconditional merger control approval from the Tanzanian Fair Competition Commission (FCC) regarding its off-market takeover bid for OreCorp Ltd.
In a first supplementary bidder’s statement issued today, Perseus said that the FCC had issued it with a notice of complete finding.
This confirmed the FCC’s acceptance of Perseus’ FCC merger clearance request and stated that no further information or documents were required by the FCC to consider the merger clearance request.
Review underway
As a result, the FCC has begun the review and investigation of the offer to determine whether it is likely to harm competition and a public notice period has been initiated that is scheduled to close on February 20, 2024.
This process is in line with the FCC’s role to promote and protect effective competition in trade and commerce in Tanzania.
As Perseus does not currently own any operations in Tanzania, it does not expect any competition concerns or issues with its merger clearance request.
READ: Perseus Mining intends to make competing takeover bid for OreCorp
Perseus’ offer to OreCorp’s shareholders is valued at a 4.0% premium to the implied value of a takeover offer made by Silvercorp Metals, as announced to the ASX on December 17, 2023, and as amended on January 16, 2024.
OreCorp has the pre-development Nyanzaga Gold Project in northwest Tanzania, which Perseus believes would complement its existing three gold-producing assets in West Africa as well as a development project in Sudan.
Positive discussions
Based on its discussions with various government officials in Tanzania, Perseus believes it is likely to receive unconditional merger control approval from the FCC for the proposed change of control of OreCorp associated with the offer before the end of February 2024.
This belief is based on discussions with senior government officials who have indicated to Perseus that the FCC has a good working knowledge of Perseus, the Nyanzaga Project and the relevant circumstances.
That knowledge comes, in part, from the FCC’s prior work in reviewing the issues associated with the potential change in ownership of the Nyanzaga Project.
Perseus also continues to believe that the undertaking set out in footnotes 7 and 24 of the Original Bidder’s Statement to keep the offer period open until at least March 15, 2024, aligns with previous statements made about the FCC’s approval process and its effect on the conditions.
To read the full first supplementary bidder’s statement, click here.