Innopac

Innopac: launches take-over bid for ASX-listed diamond miner, Merlin Diamonds, agreed to make an offer for 100% of the issued and paid-up share capital of Merlin Diamonds, at the bid price of A$0.28 (approximately 37% premium on the last closing price) for each Merlin Diamond share. The price translates to a total of A$59.4m (approximately $76m at an exchange rate of A$1.00 to S$1.28). With the acquisition, Innopac is poised to become the first and only listed diamond miner on the SGX-ST. Merlin is the only diamond mine in Australia’s Northern Territory, with the second largest JORC-compliant diamond resource and reserve in Australia with 7.2m carats. Merlin Diamonds’ flagship project, Merlin Diamond Mine Project in Australia’s Northern Territory, is one of only three diamond mines in Australia and has a high proportion of gem-quality diamonds. Although Merlin's FY12 sales generated proceeds of US$1.9m, Merlin had been in a loss in the past 2 years, with FY11 loss of A$1.3m, and FY12 loss of A$2.8m.