Mareterram Limited - Valuation range by IER of 25.3-31.3cps well below offer price of 35cps
Mareterram Limited (ASX: MTM) has released its Target Statement in relation to the conditional proportional off-market cash offer by major shareholder Sea Harvest Holdings Proprietary Limited (Sea Harvest). The Independent Expert has provided a valuation range of 25.3-31.3 cents per share, well below the Offer price of 35 cents per share.
Australian sustainable agribusiness, Mareterram Limited (ASX:MTM), has endorsed, via its Target Statement, the Sea Harvest offer in relation to Sea Harvest's proportional takeover of the Company.
Under the proposed transaction, Sea Harvest proposes to acquire 50% of shares held by Mareterram shareholders at a price of A$0.35 per Ordinary share.
The Independent Expert has concluded that the Offer is both Fair and Reasonable (in the absence of a superior offer) with a valuation range of 25.3c to 31.3c, below the Offer price of 35 cents per share.
The Offer is subject to Sea Harvest achieving sufficient acceptances that would result in Sea Harvest obtaining a minimum shareholding of 50.1% in Mareterram. Should all Mareterram shareholders accept the offer, Sea Harvest will own 59.65 of Mareterram.
All the Directors of Mareterram have indicated that they intend to accept the Offer, in the absence of a superior proposal.
The offer will officially open on 8 June and close on 8 July 2016 unless extended or withdrawn.