Bauba Resources in takeover bid by Raubex

Even though Bauba Resources has been listed on the JSE since 2010, it is a very little known mining company. The mining exploration group has had a tough journey in the chrome and PGM development space. Despite all this, infrastructure and construction group Raubex has clearly spotted an opportunity here.

Raubex has acquired a further 24.7% in Bauba, taking its stake to around 51% of shares in issue. This means that Raubex needs to make a mandatory offer to all other shareholders in Bauba, except Pelagic Resources (a Singaporean company) with which Raubex is acting “in concert” for purposes of Takeover Law.

Together, these companies hold 73% of Bauba. The price is R0.42 per share and Mazars has been appointed as independent expert to opine on whether the offer is fair and reasonable. The final opinion will be included in the circular.

If 90% of the remaining Bauba shareholders accept the offer, Raubex can use s124 of the Companies Act to force the other 10% to sell their shares. This would then result in a delisting of Bauba. The share price was trading at R0.38 before the announcement went out.