CBH Prefers Toho Zinc's Revised Offer to Nyrstar's Full Bid

PERTH, Mar. 18 -- CBH Resources Ltd., an Australian lead and zinc miner, recommended shareholders accept a proposal to sell stock and bonds to Japan's Toho Zinc Co. over Nyrstar NV's bid worth A$213 million ($196 million) in stock.

"Toho's revised proposal will provide CBH shareholders with the best of both worlds," CBH Managing Director Stephen Dennis said today in a statement. "Shareholders will be able to receive significant near term gains on a portion of their CBH shares, and they will also have the opportunity to participate in the future growth of the company."

Toho agreed to pay 25 Australian cents a share and raise its holding to 49.9 percent, the maximum level permitted without taking control, Sydney-based CBH said March 16. Belgium's Nyrstar, the world's largest zinc producer, on March 12 raised its initial offer by 44 percent to 19.5 Australian cents a share.

"The independent committee considers that the revised Nyrstar proposal cannot be successful in its current form, and does not recommend the proposal to CBH shareholders," CBH said.

Nyrstar also offered A$73.35 million for 75 percent of the company's convertible notes, taking the full offer value to A$286.35 million, according to Bloomberg calculations.

Shares of CBH have been halted from trading since March 16, when they closed 8.8 percent to 18.5 cents in Sydney trading, valuing the company at A$202.5 million.