Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

After a "number of unsuccessful attempts" to engage <a href="https://www.smartkarma.com/entities/panoramic-resources-ltd" target="_blank" data-smartkarma-citation="entities:15960:1" rel="noopener">Panoramic Resources (PAN AU)</a>'s board in talks on a change of control, <a href="https://www.smartkarma.com/entities/independence-group-nl" target="_blank" data-smartkarma-citation="entities:462:1" rel="noopener">Independence Group Nl (IGO AU)</a> has gone hostile with an <a href="https://www.asx.com.au/asxpdf/20191104/pdf/44b7vds0bcg8hm.pdf" target="_blank" rel="noopener">off-market scrip bid</a>.
IGOs Offer of 1 IGO share for every 13 PAN shares held implied an Offer price of A$0.476/share for each Panoramic share, a 42% premium to the closing price of PAN shares on Nov 1, and an equity value of about A$312mn.
The Offer is subject to operational due diligence. IGO holds 24.9mn shares, or about 3.8% of PAN.
As Australia's largest independent producer of nickel,  IGO have a proven track record as a mine operator and is ideally placed to unlock value of PAN's key asset, the Savannah nickel-copper-cobalt mine in the Kimberley region of Western Australia.
PAN restarted the Savannah site in 2018 after around three years on care and maintenance due to low commodity prices, but is currently well short of budgeted production.
PAN's largest shareholder (<a href="https://www.asx.com.au/asxpdf/20190930/pdf/4491jpf8f7mkmh.pdf" target="_blank" rel="noopener">34.7%</a>) is <a href="https://www.smartkarma.com/entities/zeta-resources-ltd" target="_blank" data-smartkarma-citation="entities:19292:1" rel="noopener">Zeta Resources (ZER AU)</a> and its representative, Peter Sullivan, has only recently been <a href="https://www.asx.com.au/asxpdf/20191104/pdf/44b7pqfn70w0vn.pdf" target="_blank" rel="noopener">elected</a> the new Chairman of PAN. Zeta is unlikely to tender at the current terms. But IGO will be content to get to a controlling 50.1% stake.

After a "number of unsuccessful attempts" to engage Panoramic Resources (PAN AU)'s board in talks on a change of control, Independence Group Nl (IGO AU) has gone hostile with an off-market scrip bid.
IGOs Offer of 1 IGO share for every 13 PAN shares held implied an Offer price of A$0.476/share for each Panoramic share, a 42% premium to the closing price of PAN shares on Nov 1, and an equity value of about A$312mn.
The Offer is subject to operational due diligence. IGO holds 24.9mn shares, or about 3.8% of PAN.
As Australia's largest independent producer of nickel,  IGO have a proven track record as a mine operator and is ideally placed to unlock value of PAN's key asset, the Savannah nickel-copper-cobalt mine in the Kimberley region of Western Australia.
PAN restarted the Savannah site in 2018 after around three years on care and maintenance due to low commodity prices, but is currently well short of budgeted production.
PAN's largest shareholder (34.7%) is Zeta Resources (ZER AU) and its representative, Peter Sullivan, has only recently been elected the new Chairman of PAN. Zeta is unlikely to tender at the current terms. But IGO will be content to get to a controlling 50.1% stake.

Independence's Hostile Offer For Panoramic

Australia

Zeta Resources Limited is an investment company. The Company's strategic investments in both listed and unlisted companies focus on oil and gas, nickel and gold.

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