SBM’s primary assets are its Southern Cross and Leonora operations, both of which are located in Western Australia. The company also purchased the Gwalia (WA) mine in 2005, which has become a main focus.
On 13 May, SBM made a takeover offer for Catalpa Resources (CAH).
The part scrip/part cash offer valued CAH at $349 million ($1.92 per share), representing a 41% premium to CAH’s closing price on 10 May.
CAH advised its shareholders to take no action but did signal that it believed St Barbara was opportunistically trying to take advantage of its weak share price.
Nevertheless, CAH advised that it will hold further talks with SBM in the coming weeks.
CAH was one of the market’s hot stocks on the day, surging more than 20%.