Bastion Secures 86.8% of Xanadu Shares, Offer Extended to July 29
Bastion Pte. Mining Ltd has secured an 86.8% interest in Xanadu Mines, prompting the board to recommend shareholders accept the takeover offer ahead of its extended July 29 closing date.
- Bastion holds 86.8% relevant interest in Xanadu shares
- Xanadu’s Takeover Committee unanimously endorses Bastion’s superior offer
- Offer closing date extended to July 29, 2025
- Potential delisting from ASX and TSX raises liquidity concerns
- Risks include dilution and compulsory acquisition at possibly lower prices
Takeover Progress and Board Endorsement
Bastion Pte. Mining Ltd has made significant strides in its off-market takeover bid for Xanadu Mines Ltd, now holding an 86.8% relevant interest in the company’s shares. This milestone has prompted Xanadu’s Takeover Committee, comprising all directors, to reiterate its unanimous recommendation that shareholders accept Bastion’s offer as soon as practicable. The committee views the offer as superior, fair, and reasonable, subject to the independent expert’s continuing assessment.
Extended Offer Deadline and Shareholder Considerations
The offer closing date has been extended to 7, 00pm Sydney time on July 29, 2025, giving shareholders additional time to consider their options. Those yet to accept are cautioned about the risks of not participating, including the possibility of compulsory acquisition of remaining shares at a price that may be lower than the current offer. The announcement underscores the importance of reviewing the Bidder’s and Target’s Statements for detailed risk disclosures.
Delisting Risks and Market Impact
Bastion has signaled its intention to delist Xanadu from both the Australian Securities Exchange (ASX) and the Toronto Stock Exchange (TSX) if the takeover is successful. This move could significantly reduce liquidity for remaining shareholders, making it more difficult to trade shares and potentially impacting their value adversely. The announcement highlights that no guarantee exists for remaining shareholders to realise value post-delisting.
Dilution and Funding Implications
Remaining shareholders face the risk of dilution if Xanadu issues new equity to fund the Kharmagtai copper-gold project, a flagship asset jointly held with Zijin Mining Group. The takeover could alter the proportionate interests of shareholders, with Bastion entitled to compulsory acquisition of remaining shares. This dynamic adds complexity to the investment outlook for those holding out beyond the offer.
Strategic Significance of Kharmagtai
Despite the takeover developments, Xanadu’s Kharmagtai project remains a significant copper-gold exploration asset in Mongolia, underpinning the company’s growth potential. The project’s future funding and development hinge on the outcome of the takeover and Bastion’s strategic plans, which investors will be watching closely.
Bottom Line?
As Bastion edges closer to full control, shareholders must weigh the risks of holding out against the certainty of the offer before the July 29 deadline.
Questions in the middle?
- Will Bastion succeed in compulsory acquisition of all remaining shares?
- How will delisting affect Xanadu’s share liquidity and valuation long-term?
- What are Bastion’s plans for funding and developing the Kharmagtai project post-takeover?
