PERTH (miningweekly.com) – ASX-listed asset manager Aurora Funds Management has revised its takeover bid for fellow listed Molopo Energy.
Aurora in July announced plans to make an 18c a share takeover offer, under which Molopo shareholders will be able to elect to receive the bid consideration in either cash, capped at A$5-million, or in Aurora shares.
However, Aurora has withdrawn its initial offer after Molopo triggered a defeating condition with the A$8.75-million acquisition of a 50% interest in a US oil and gas project owned by Orient FRC.
Aurora this week told shareholders that given Molopo’s failure to provide the market with any further information around the transaction, Aurora was unable to assess the impact of the transaction on its bid for Molopo. However, based on the limited information available, it was believed that the transaction would be significantly value dilutive to Molopo.
As a result, Aurora has now launched a revised bid for all the shares in Molopo, offering shareholders in that company 13.5c each for their shares. Again, Molopo shareholders could elect to receive the bid consideration in cash (capped at A$5-million in total), or the equivalent value in Aurora shares.
Aurora told Molopo shareholders that the new bid still provided an attractive alternative to the current uncertainty and lack of strategic direction at Molopo, adding that the new bid would give Molopo shareholders an opportunity to avoid further uncertainty and lack of direction.
Molopo has received severe criticism for its Orient transaction, with shareholder Keybridge Capital this week launching legal action in the Supreme Court of Western Australia.
Keybridge was hoping to gain access to information around the transaction, including whether the board of Molopo had obtained a valuation of Orient prior to the transaction, while also questioning the structure of the transaction.