SYDNEY (Thomson Financial) - Leading Australian base metals miner Zinifex Ltd said on Friday its 860.7 million Australian dollar cash bid for Allegiance Mining NL has been extended after it snared 73 percent of the emerging nickel miner.
The final offer of 1.10 dollars a share offer will now close on April 18, the company said.
The offer price represented a 55 percent premium before the bid was announced in December.
Zinifex chief executive Andrew Michelmore said the majority of Allegiance directors have recommended acceptance of the offer and have either accepted, or intend to accept, in respect of all shares held by them or on their behalf.
Michelmore said that as Zinifex has an interest greater than 70 percent, no other bidder would now be able to acquire a controlling interest in Allegiance.
He said both companies would now work towards commissioning Allegiance's new Avebury nickel mine in western Tasmania and delivering nickel concentrates to China's largest nickel producer, Jinchuan Group Ltd. Jinchuan has an offtake agreement with Allegiance.
The takeover is the first move into nickel by Zinifex, which is one the world's largest miners of lead and zinc.
Earlier this month, Zinifex announced it had agreed to merge with Australian gold and base metals company Oxiana Ltd to form a 12 billion dollar group.
Under the proposal, Zinifex shareholders will receive 3.1931 Oxiana shares for each Zinifex share they own. The terms reflect a merger of equals, with the merged entity to be owned 50 percent by Oxiana shareholders and 50 percent by Zinifex shareholders.
Allegiance shares closed at the 1.10 dollars a share offer price, Zinifex ended up two cents at 10.01 dollars and Oxiana finished up four cents at 3.19 dollars.
(1 US dollar = 1.08 Australian dollars)
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