Globe says George Forrest bids $7 for Forsys Metals

2008-11-17 05:07 ET - In the News

The Globe and Mail reports in its Saturday, Nov. 15, edition that breaking the deal paralysis that has enveloped the beleaguered mining sector, Forsys Metals announced it has received a $579-million takeover bid from African construction and mining magnate George Forrest International Afrique SPRL. The Globe's Andy Hoffman writes in the Business Ticker column that Forrest is offering $7 a share for Forsys, whose major asset is the Valencia uranium deposit in Namibia. The bid represents a 51-per-cent premium to Forsys's closing share price on Nov. 13. "Management and the board feel good about it, we think it represents a very good return for our shareholders," said Forsys chief executive officer Duane Parnham. Valencia contains 30 million pounds of uranium reserves and an additional 32 million pounds of measured and indicated resources. Forsys stock closed unchanged at $4.64 Friday in Toronto, since it shares remained halted pending the announcement. The shares have a one-year range of $2 to $6.19. The Globe's Ted Dixon writing in the Insider Trading column on Jan. 26 noted that Forsys insiders were buying stock at prices ranging between $2.12 and $3.04, a bullish sign. Forsys stock was then trading at $2.67.