St Barbara backs Genesis bid for Leonora despite revised Silver Lake offer

Credit: St Barbara Ltd.

Australia’s St Barbara said on Friday it continues to back a A$600 million ($406.98 million) proposal from Genesis Minerals for its Leonora assets, despite multiple offers from peer Silver Lake Resources.

On Wednesday, Silver Lake revised its offer yet again and said its latest A$718 million proposal addressed St Barbara’s concerns that the buyout financing was subject to due diligence.

But St Barbara’s board was not convinced.

While the non-binding proposal from Silver Lake is at a premium to the binding offer from Genesis, this premium alone does not justify the significant risk of losing the Genesis transaction, it said.

Providing Silver Lake with access to due diligence would potentially expose St Barbara to a termination of the binding deal with Genesis, it said.

St Barbara added that Silver Lake has provided no evidence that there would be sufficient support from its shareholders to approve a deal.

Silver Lake did not immediately respond to a request for comment.

($1 = 1.4743 Australian dollars)

(By Harish Sridharan; Editing by Shailesh Kuber)


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