Business
Letter to Shareholders
Letter to Shareholders.
About this update from Cerillion Plc
[{"type":"text","content":"\n Celtic Resources Holdings PLC\n12 October 2007\n\n\n\n Celtic Resources Holdings Plc\n\n Letter to Shareholders\n\n\nThe below is the text of a letter being posted today to shareholders of Celtic\nResources Holdings Plc:\n\n\n\"Dear Fellow Shareholder,\n\nREJECT SEVERSTAL'S PROPOSED OFFER\n\n\nBackground\n\nOn 5 September 2007, Severstal approached your Board with an unsolicited and\nhighly conditional potential offer of 220 pence per share for the entire issued\nshare capital of Celtic Resources Holdings Plc (\"Celtic\" or the \"Company\"),\nwhich your Board unanimously rejected. On 19 September 2007, Severstal acquired\nshares in the Company at a price of 232 pence per share. On 27 September 2007,\nthe Company announced that a third party, other than Severstal, had approached\nCeltic with a view to making an offer for the Company. On 28 September 2007,\nSeverstal announced its intention to make an offer for Celtic at 270 pence per\nshare.\n\nYour Board, who are being advised by Gleacher Shacklock LLP and Strand Partners\nLimited, unanimously consider that Severstal's proposed offer of 270 pence\nsignificantly undervalues Celtic.\n\nSeverstal has still to dispatch its formal offer document, but has taken the\nextraordinary step of sending you a letter urging you to accept its offer,\nbefore it has been made. Accordingly, your Board felt it was appropriate to\nwrite to you now, rather than wait until Severstal sends you its formal offer\ndocument. I will continue to keep you informed of all material developments\nduring the course of the offer.\n\n\nCeltic's key attractions\n\nSeverstal's proposed offer of 270 pence per share fails to recognise the\nCompany's excellent strategic position, planned growth in production against a\nbackground of a high and rising gold price and our cash rich balance sheet.\n\nSeverstal is trying to buy Celtic cheaply. It is trying to take possession of:\n\n• A highly experienced management team with a strategy for driving shareholder\n value\n• An excellent portfolio of assets, with gold production expected to\n reach 90,000 ounces in 2007 and planned to rise substantially in 2008; and\n molybdenum production anticipated to reach 1.5 million pounds in 2007\n• The proven ability to use the technologically advanced biological process for\n gold recovery (BIOX(R)) for gold production in the Fo...