Pan African to buy Australia's Emmerson Resources for £163m

(Sharecast News) - Pan African Resources on Monday said it was buying Australia's Emmerson Resources in a deal worth AUD $311m (£163m).

Emmerson shareholders will receive 0.1493 Pan African Resources shares in the form of Australian-listed CHESS Depositary Interests for each Emmerson share. The deal is being struck at a 36.4% premium to Emmerson's last closing price of AUD $0.330.

The Emmerson board has recommended shareholders vote in favour of the scheme, in the absence of a superior proposal. Two major shareholders with a combined stake of around 26% of the Australian miner - Noontide Investments and TA Private Capital - have provided intention statements to vote in favour.

Pan African currently holds 75% of a gold and copper joint venture with Emmerson at Tennant Creek in Australia's Northern Territory.

Reporting by Frank Prenesti for Sharecast.com