The best performer on the All Ordinaries index on Monday has been the Panoramic Resources Ltd (ASX: PAN) share price.
In afternoon trade the Western Australia-based nickel miner's shares are up 30% to 43.5 cents.
Why is the Panoramic share price rocketing higher today?
This morning Panoramic Resources received an off-market takeover offer from fellow nickel producer Independence Group NL (ASX: IGO).
According to the release, Independence has offered to acquire all the shares it does not already own in an all-scrip deal. It has tabled an offer of 1 Independence share for every 13 Panoramic shares held.
This implies an offer price of 47.6 cents per share based on Independence's one-month VWAP. This is a premium of 42% to Panoramic's last close price and values its equity at $312 million.
The release goes on to explain that Independence has made this offer directly to Panoramic shareholders after several unsuccessful attempts to engage with the Panoramic board.
Independence believes the offer is "the best opportunity for Panoramic's shareholders to crystallise and de-risk meaningful value from their investment in Panoramic in the foreseeable future."
Peter Bradford, IGO's Managing Director & CEO said: "The Offer represents a rare instance of genuine and obvious mutual benefit for both Panoramic and IGO shareholders. Panoramic shareholders will be able to crystallise future value from Savannah at a very attractive price and retain exposure to its upside potential, while also gaining exposure to Nova and Tropicana and IGO's extensive portfolio of belt-scale exploration projects prospective for nickel and copper."
"The Company remains leveraged to the nickel market and we believe IGO has the financial, operational and technical capability to fully unlock value from Savannah and Panoramic's exploration portfolio. Given our unique positioning as Australia's largest independent producer of nickel, to unlock value at Savannah, we have decided to provide the Offer for the consideration of all Panoramic shareholders," he added.
Panoramic response.
The Panoramic board has responded to the news and advised shareholders to take no action.
It will evaluate the offer and bidder's statement and provide shareholders with a recommendation in due course. Panoramic will keep its shareholders fully informed of further developments.
