GRD announced yesterday it had entered into a binding agreement where shareholders would receive 55c cash for every GRD share held via a scheme of arrangement.
The deal is subject to GRD shareholder approval and is backed by the company’s board.
“The board believes the cash offer from AMEC represents a good opportunity for GRD shareholders to realise value and secure an attractive premium in an uncertain market environment. As a board we are unanimously of the view that AMEC’s proposal is in shareholders’ best interests,” GRD chairman Richard Court said.
The offer is a 34% premium to GRD’s share price on the last day of trading before AMEC’s proposal on June 10 and a 75% premium to the three-month weighted average price to June 10.
GRD management said AMEC was positioned to continue the development of GRD.
“The acquisition of GRD, and the calibre of people within the company, allows AMEC to expand our natural resources business across Australasia and Africa while further enhancing our mining presence and capability in South America,” AMEC chief executive Samir Brikho said.
GRD was trading at 49.5c this morning.
