Mercantile plans to buy Bauxite Resources, sell its assets and return cash to shareholders

ASX-listed Mercantile Investment Company has announced its intention to make a proportional off-market takeover bid for half of fellow-listed Bauxite Resources as part of a plan to put cash back in shareholders’ pocket after a decade of “failed” exploration efforts. In a letter to Bauxite Resources shareholders, Mercantile detailed its planned offer of 9c a share for one of every two shares it did not already control, saying the price represented a 14% increase on the last sale price of Bauxite Resources shares.