Mineral Deposits says French partner not being 'fair' with bid

MINERAL Deposits is protesting that its French partner Eramet is not being “fair” with its’ A$1.46 per share bid for the ASX-listed company and has set up a “data room” to try and get a higher bid.

Mineral Deposits says French partner not being 'fair' with bid Mineral Deposits says French partner not being 'fair' with bid Mineral Deposits says French partner not being 'fair' with bid Mineral Deposits says French partner not being 'fair' with bid Mineral Deposits says French partner not being 'fair' with bid

Grande Cote is a key asset held 50% by Mineral Deposits.

The Mineral Deposits' board recommendation to shareholders to reject the Eramet bid comes with the claims the 50:50 mineral sands joint venture will likely generate free cash flow in the order of US$82-162 million in 2019.

That implies Eramet's bid price represents a free cashflow multiple of about 2.8-5.8-times … "a significant discount to market valuations in the sector".

Mineral Deposits' board claims to have received "public support from key shareholders" supporting its belief the bid is unfair.

Mineral Deposits said it was now "focused on pursuing all available options such that the value of the company's assets is fully recognised and realised" for shareholders.

"To that end, a data room has been established and Mineral Deposits is in disc...

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