Berkeley Resources Limited, an Australian uranium producer, is in negotiations with Russian steel maker Severstal over a potential takeover offer by Severstal, Berkeley Resources said on Friday.
"Berkeley ...has granted Severstal the right to subscribe for approximately 16.3 million new Berkeley shares at a price of A$1.70 per share, subject to the condition that Severstal publicly announces an intention to proceed with a takeover bid for the company at a price of A$2.00 per share ...The shares that may be issued to Severstal...would represent approximately 9.1 percent of the fully diluted share capital of Berkeley," Berkeley Resources said in a statement, adding that Severstal's right to subscribe for shares will expire on December 10.
"In the event that Severstal publicly announces a takeover bid for the company at a price of A$2.00 per share, Berkeley's directors would unanimously recommend that shareholders accept that offer, in the absence of a superior competing proposal."
The offer price of A$2.00 dollars per share would represent a premium of about 40 percent compared to market price, Berkeley said.
MOSCOW, October 29 (RIA Novosti)
