Genesis’ Dacian dramas give Albemarle a peek at an alternate universe

afr.com:

If Albemarle executives needed any emotional reinforcement about their decision to abandon a $6.6 billion takeover of Liontown, Monday’s ructions between two other Perth miners, Genesis Minerals and Dacian Gold, would have given them great comfort and perhaps a bit of vindication.

Genesis on Monday rolled out a $56.6 million bid to clean up the remaining 19 per cent of Dacian, after its hand was forced by a few stubborn types who refused to sell into last year’s scrip-based takeover.

Genesis Minerals, led by Raleigh Finlayson, is trying again to complete the takeover of Dacian. Bloomberg

The holdouts, led mostly by German investor Delphi Group, had frustrated Genesis’ plan to make Dacian the first step in a broader consolidation of the Leonora gold district.

They refused to accept last year’s offer of 0.0843 Genesis shares for each Dacian share they owned, leaving Genesis owning just over 80 per cent of the ASX-listed company.

The holdouts rejected that original offer when Genesis shares were worth less than the $1.39 they closed at on Friday.

Genesis was a pre-revenue developer in those days; it is now a bigger and broader revenue-generating company, having acquired St Barbara’s Gwalia mine.

The Dacian holdouts were rewarded for their stubbornness on Monday when Genesis came back offering 0.1685 Genesis shares for each Dacian share.

In simple terms, Genesis is now offering to pay 23.5¢ for each remaining Dacian share, having originally offered closer to 10.2¢ for them.

Genesis has offered to bump up the price to the equivalent of 27¢ per share if it gets past 95 per cent ownership.

As a scrip bid, the actual value of the offer is constantly changing with the price of Genesis shares.

Genesis is a relatively tightly held