Panel Declares Circumstances in Relation to Majestic Resources' Bid for Namakwa Diamond Company Unacceptable [27/04/2001] The Takeovers Panel

Friday, 27 April 2001

Panel Declares Circumstances in Relation to Majestic Resources' Bid for Namakwa Diamond Company Unacceptable

The Corporations and Securities Panel has made a declaration in relation to Majestic Resources' (Majestic) off market takeover bid for the ordinary shares in Namakwa Diamond Company (Namakwa) that unacceptable circumstances had arisen as a result of a number of deficiencies in Majestic's bidder's statement and the accompanying letter from the Chairman of Majestic.

The Panel declared that Majestic's disclosure in its bidder's statement and the Chairman's letter contained a number of deficiencies, including:

  • claims about projected production capacity and mineral reserves that are not substantiated;
  • a description of mineral resources in terms which are misleading and do not comply with the requirements of the Australian Code for Reporting of Mineral Resources and Ore Reserves; and
  • the bidder's statement does not set out the material assumptions underlying the pro-forma balance sheets that have been included.

The Panel has required Majestic to prepare a supplementary bidder's statement to be sent to Namakwa shareholders which remedies these deficiencies. The Panel has also required Majestic to extend its offer period until at least 17 May.

Nigel Morris
Corporations and Securities Panel
Level 47 Nauru House,
80 Collins Street,
Melbourne VIC 3000
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au