Polaris supports higher Min Res offer

Takeover target Polaris Metals has recommended a sweetened offer from Bibra Lake-based Mineral Resources, which has introduced a cash component.

In a statement, the board of Polaris said it considered the updated Mineral Resources offer to be superior to rival bidder Singapore-based Lion-Asia's cash offer, which is recommended shareholders reject.

Mineral Resources said its offer was now one of its shares for every 12 Polaris shares, plus five cents cash for each share.

The bidder said the revised offer valued Polaris at 65.33 cents per share, up from 56.96 cents under its earlier offer.

Polaris shares were trading at 66.5 cents at 13:18 AEST.

Mineral Resources, which has a relevant interest of 29.19 per cent, has extended its offer to November 9.

Earlier this month, the Polaris board was undecided on both bids with Mineral Resources orginally offering one of its shares for every 12.5 Polaris shares, while Lion-Asia was offering 60 cents cash for each share.

Polaris holds iron ore tenements spanning more than 6,000 square kilometres across the Pilbara and Southern Cross regions of Western Australia.

Both MRL and Lion Asia or associated entities already control large portions of shares in Polaris.

Mineral Resources said today that it had asked Polaris to waive the 50.1 per cent minimum acceptance condition, and that it would waive all other conditions, too, should it pass the 50.1 per cent threshhold.

It also is extending its offer period by two weeks, now to close at 2000 AEDT on November 9.

Mineral Resources said its new offer represented a 118 per cent premium to Polaris's share price on August 14, the trading day prior to its original offer announcement.