CSP01/047
The Panel advises that it has published its reasons for declaring that circumstances in relation to Majestic Resources' (Majestic ) off market takeover bid for the ordinary shares in Namakwa Diamond Company (Namakwa ) were unacceptable. The declaration was made on 26 April in response to an application by Namakwa received on 30 March.
The Panel declared that Majestic's disclosure in its bidder's statement and the accompanying letter from the Chairman of Majestic contained a number of deficiencies, including:
- claims about projected production capacity and mineral reserves that were not substantiated;
- a description of mineral resources in terms which were misleading and did not comply with the requirements of the Australian Code for Reporting of Mineral Resources and Ore Reserves; and
- the bidder's statement did not set out the material assumptions underlying the pro-forma balance sheets that have been included.
Majestic provided an undertaking to the Panel to prepare a supplementary bidder's statement remedying these deficiencies which was subsequently sent to Namakwa shareholders. The Panel also requested Majestic to extend its offer period until at least 28 May.
The reasons for the Panel's decision in this matter are available at the Panel's website.
The Panel for this matter was Nerolie Withnall, Fiona Roche and Chris Photakis.
Nigel Morris
Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au
