GPG sells Otter shares as takeover bid made

By Phil Boeyen, ShareChat Business News Editor

Thursday 11th October 2001

Australian mining giant Normandy wants to take over Otter Gold (NZSE: OTR).

Normandy is proposing to buy all the shares in Otter at a rate of 1.9 Normandy NFM shares for every 100 Otter shares.

Based on Normandy's closing price on Wednesday of A$9.30 per share the offer values each Otter share at 17.67 cents per share.

"This represents a premium of 68% to yesterday's closing price for Otter shares of 10.5 cents," Normandy says.

The company is also planning to make a nominal cash offer for outstanding listed and unlisted options in Otter. The offer is conditional on at least 50.1% acceptance with offer documents due to be sent out next month.

Normandy has already agreed to buy 7.8 million shares or 9.9% of the company from Guinness Peat Group (NZSE: GPG) in return for Normandy shares. Earlier this year GPG admitted its investment in the company had proved to be a 'resounding dud'.

Otter's primary assets are a 60% interest in the Tanami joint venture and 33% interest in the Waihi Operations in New Zealand, held through the Martha Hill and Union Hill joint ventures.

"The successful completion of this acquisition would provide significant benefits to both companies and represents a logical consolidation of both groups' extensive interests in the Tanami region under one management team," Normandy NFM says.

"By accepting shares in Normandy NFM, Otter shareholders will benefit from being part of a much larger group which is paying dividends and has the financial capacity to fully explore the combined group's Tanami acreage."

The acquisition will increase Normandy NFM's gold resources by around 550,000 ounces and annual production by nearly 40,000 ounces.

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