DMCI Mining is to launch a mandatory cash offer at 50p per share for Toledo Mining (LON:TMC) after its shareholding rose above 30%.
DMCI Mining, a wholly-owned subsidiary of DMCI Holdings Inc. (DMCI), increased its stake in Toledo on Friday from around 17.0% to around 37.7% by purchasing Jason Cropper’s stake at 50p per share.
Cropper sold 10.34mln Toledo shares, representing 20.7% of the issued share capital of the Philippines-focused nickel producer.
The terms value Toledo at around £24.9mln, versus a market capitalisation of £15.2mln on Friday, February 15, the day before the bid was announced.
Toledo’s shares closed at 30.5p on Friday.
DMCI Mining said it would seek recommendation of the offer from the board of Toledo, although the current recommendation from Toledo’s directors is for shareholders to sit tight.
Philippines-quoted DMCI Mining owns an 18.6% indirect interest in Berong Nickel Corporation, in which Toledo has a 40% stake.
Commenting on the offer, Isidro Consunji, chairman and chief executive of DMCI Mining, said: "We are very pleased to have increased our investment in Toledo with the acquisition of Mr Cropper's shares. Our offer to the remaining Toledo shareholders represents an attractive opportunity to crystallise a significant premium to the prevailing market price in cash today."