SouthernEra Recommends Mwana Acquisition Offer

AIM-listed Mwana Africa Ltd has increased its offer to purchase all of Canadian diamond miner SouthernEra’s outstanding common shares from one of its ordinary shares for every 2.33 of SouthernEra’s to one for every 2.28 shares.

SouthernEra’s board of directors is recommending to its shareholders to accept the amended offer, which values the company at C$0.67 (US$0.63) per share, an aggregate value of C$205.3 million ($195.08 million). 

The amended offer will be open for acceptance until September 5.

“The Board of Directors of SouthernEra has considers a number of investment and financial alternatives and believes the offer from Mwana is in the best interests of shareholders,” commented SouthernEra chairman, Christopher Jennings.

Earlier in the month, the company said it needed more time to consider Mwana’s offer.

“The offer provides SouthernEra shareholders with an attractive premium for their shares. Together with Mwana’s base and precious metal assets, the combined company will possess a strong African diamond portfolio with production and high quality alluvial and kimberlite projects.”

Among Mwana’s assets is a share of the MIBA, the DRC’s largest diamond mine.

SouthernEra is exploring alluvial and kimberlite sites in the DRC, Botswana, South Africa and Canada. The company also holds the Klipspringer diamond mine in South Africa and an 18 percent free carried interest in the Camafuca diamond project in Angola.