14 September 2017

Zimbabwe: Rich Pro Extends Takeover Offer Deadline for Asa Resource

Chinese company Rich Pro Investments Limited (RPI) has extended the deadline of its takeover offer for Asa Resource Group Plc as it continues talks with the mining group's administrators.

RPI, an investment company owned by China's Zhejiang Hailiang Co Ltd and controlled by Feng Hailiang, (Yat Hoi Ning's alleged ally) is making the cash offer aimed at buying out London minorities.

The deadline for accepting the offer had originally been September 23, 2017 but has been extended to October 7 while discussions continue, and the Chinese investor is urging shareholders to accept the offer as soon as possible.

"RPI is pleased to announce that there has been a constructive dialogue between RPI, the Wider Hailiang Group, and the Administrators, and that RPI and the Wider Hailiang Group have provided a significant amount of information to the Administrators.

"This discussion and the sharing of information between RPI and the Administrators remain ongoing," said Rich Pro Investments. In July, Rich Pro made an offer of 2,10 pence for each Asa share valuing the company at around GBP35,5 million, which it said was a "highly attractive premium" of about 65 percent to the closing price before the announcement.

Asa in August appointed administrators to investigate Asa's prior business and banking activities and the relationship between Asa and other companies.

The appointment came after Asa said it was struggling to meet its ongoing liabilities and it was concerned about cash flows after it received the takeover bid from Chinese industrialist Feng Hailiang's Rich Pro.

Following the takeover bid, there were allegations that Asa Resource Plc's former executive chairman Yat Hoi Ning has been plotting a vicious fight back through Rich Pro Investments.


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