South Africa's Trans Hex Rejects Takeover Bid For Miner

Finance and Trade
28/09/2016 08:25

The board of directors of South African diamond mining firm Trans Hex Group has advised its shareholders to reject a takeover bid from retail tycoon Christo Wiese, the country's richest man. The company said that a panel of independent members found the offer underpriced the miner.

Snowden Mining Industry Consultants Proprietary Ltd, which was hired by the independent members of the board, valued the company at $0.59 per share, the rough producer said in a statement to the Johannesburg Stock Exchange, Rapaport reported. The takeover bid price offered by Cream Magenta and Metcap, both of which are owned by Wiese, together with RAC Investment Holdings, was $0.29 per share.

“The independent board, having taken into account the opinion of the independent expert regarding the offer, is of the opinion that the terms of the offer are not fair and not reasonable to shareholders and, accordingly, recommends that shareholders do not accept the offer,” Trans Hex said.