Persistence has paid off for Zinifex (ZFX) in its long battle to acquire all the shares in Allegiance Mining, after it announced today it has gained control of the nickel miner.
In a substantial shareholder notice, Zinifex advised it is now in control of the miner after increasing its stake to 51.10%, from 44.78% previously.
In addition, the lead and zinc miner had gained further prominence with its proposed merger with gold and copper producer Oxiana, announced on 3 March.
However, Zinifex faces an obstacle in its quest to hold 100% of Allegiance because China’s Jinchuan Group said last fortnight it plans to hold on to its 10.4% stake.
The ZFX/AGM takeover saga has finally ended, after the three-month ordeal has seen the involvement of the Takeovers Panel, speculation about the offer being dropped, and extensions of the offer closing date.
The Takeovers Panel made a declaration of unacceptable circumstances and final orders regarding the Zinifex bid, however, this was later resolved.
The bid, which was launched in December, offered Allegiance shareholders 0.90 cents per share, valuing the company at about $ 775 million.
Following a rejection of the offer from Allegiance’s board, Zinifex sweetened the deal increasing the offer to $1 per share and the bid value to $790 million.
Allegiance was among the most traded stocks today, with just over with nearly 32 million shares changing hands.
Shares in Allegiance were flat at $1.10, while Zinifex’s shares were down 41 cents to $9.49.
