Polo Resources Limited, the mining and exploration investment company domiciled in the British Virgin Islands, noted the announcement published with respect to an offer by Guangdong Rising (Australia) Pty Ltd to acquire 100% of the issued shares of Caledon at a price of 112p per share. Polo Resources holds an interest of approximately 29.8% in the issued share capital of Caledon, in addition to £2.5 million of Caledon’s 8.5% unsecured Covertible Loan Notes issued in 2010.
In case the proposed acquisition of Caledon will be completed by Guangdong Rising at the announced price, Polo will receive total proceeds on disposal of its interest of approximately £100 million equivalent to approximately 4.36p per issued Polo share.
Neil Herbert, Executive Co-Chairman and Managing Director of Polo Resources, said in his comments that “The disposal of our interest in Caledon will provide the company with £100 million in additional liquidity. Subject to and upon completion of the sale and receipt of cash proceeds, the Board of Polo intends to utilise part of the proceeds to fund a special dividend to shareholders of 1p per share.
Polo’s strategy is to identify assets, listed and private, which have the potential to increase shareholder value…”