The Australian Government Takeover Panel has rejected the Paladin Resources (ASX:PDN) defeating conditions which would have stopped the planned takeover of NGM Resources (ASX: NGM), with orders from the Panel for Paladin to extend the offer period for its bid to Friday 22 October 2010.
NGM’s directors stated today that they unanimously recommend that NGM shareholders accept Paladin’s takeover offer, in the absence of a superior proposal, with all directors having already accepted.
On the material available, the Panel said Paladin is not entitled to rely on condition 10.12(m) because a material adverse effect on NGM has not been established.
The offer remains subject to a number of defeating conditions, including a 90% minimum acceptance condition.
As at Thursday 7 October 2010, Paladin holds a 71.8% interest in NGM.
Other orders today from the Panel to Paladin also include:
- Immediately withdraw the notice given to NGM and ASX under s630;
- Lodge a new notice with NGM and ASX in accordance with s630 in due course; - Make an ASX announcement as soon as practicable explaining the effect and substance of the orders; and
- As soon as practicable, confirm in writing to the Panel that it has complied with the orders.
NGM said it now looks forward to moving to completion of Paladin’s takeover offer, in the friendly spirit in which the bid was agreed.
NGM shares resumed trading briefly before the market close, almost instantly jumping back to the $0.15 share price of the takeover offer.