IMIC makes Affero triple takeover offer

AIM-listed mining investor International Mining & Infrastructure Corporation (IMIC) has confirmed an initial offer for much larger AIM peer Afferrro Mining.

AIM-listed mining investor International Mining & Infrastructure Corporation (IMIC) has confirmed an initial offer for much larger AIM peer Afferrro Mining.

In fact IMIC has made three possible offers for the dual Toronto- and London-listed iron ore developer, involving different mixes of cash and shares.

The three potential options include an offer of 80p per share in cash plus a convertible loan note of 20p that makes a total of 100p for each Afferro share; or 50p plus a 70p convertible loan for a total of 120p; or an offer entirely in IMIC shares that is equivalent to a valuation of 140p.

IMIC, which already owns 5.0% of Cameroon-focused Afferro, said it needs to raise sufficient funding in order to complete the purchaser of.

Afferro Chief Executive Officer Luis da Silva said the offer was an endorsement of the strong progress that Afferro has made.

"We are encouraged to see continued strong industry interest in Afferro and will continue to investigate options as they are presented with shareholders' interests always at the centre of everything we do."

IMIC, which is chaired by serial AIM entrepreneur Haresh Kanabar, has told Afferro that it intends to provide written conformation that the minimum $100m cash is available to execute its proposal within 15 business days at the latest and that it plans to raise further cash in the future to enable further development of Afferro's four main projects.

Da Silva added: "The update on the IMIC discussions is a development that should be viewed positively especially in respect of the Chinese consortium that IMIC has assembled to address the iron ore infrastructure requirements of the Nkout project. We look forward to further information in the near term so that any eventual process may be further clarified."

"The board of directors does not believe that an informed decision can be taken by the company until such time as a more formal offer and satisfactory confirmation from IMIC's financial advisers, is received."

As such, Afferro advisesshareholders that no action should be taken at present and the company looks forward to further updating the market within 15 business days."

OH

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022