MC Mining Limited (AIM:MCM) shares jumped 15.6% to 9.25p after major shareholders proposed a takeover, but have not yet indicated a definitive offer price.
The company was informed via a letter dated 1 November from Senosi Group Investment Holdings, a vehicle of non-executive director Mathews Senosi, and Dendocept Proprietary Ltd, respectively 24% and 7.1% shareholders, according to the company's website.
It was sent on behalf of a consortium of shareholders and associates said to be holding a total stake of 64.5% in the company.
A "confidential and incomplete" non-binding, conditional and indicative offer had been sent in early September from Senosi Group and Dendocept, which MCM said "set out indicative but incomplete details of a proposed takeover... including an indicative cash consideration offer range of AUD$0.20-AUD$0.23 per ordinary share".
While an independent board committee set up to consider the earlier proposal has been evaluating the indicative terms and taking advice, it was noted that the proposal notifies of an intention and proposal to make a takeover offer but "does not yet provide a definitive offer price" and its progress is also subject to the consortium obtaining regulatory relief from the Australian Securities and Investments Commission (ASIC).
Shareholders were advice to take no action yet.