Major Firestone shareholder rejects Range River's hostile takeover offer
JOHANNESBURG (miningweekly.com) - JSE-listed Firestone Energy on Friday welcomed the rejection by one of its major shareholders of the hostile takeover bid by ASX-listed Range River Gold and reiterated its recommendation that other shareholders follow suit.
BBY Nominees, which holds a 16.9% stake in Firestone, declined the offer, restating its confidence in Firestone.
“We confirm that we will not be accepting the offer as currently presented to Firestone shareholders. We believe Firestone is in the best position to advance the development and future production of the Waterberg coal project,” said BBY CEO Arun Maharaj.
Firestone continued to state that the offer was “inadequate and opportunistic” and failed to provide its shareholders with appropriate value for their shares despite Range River improving its offer earlier this month.
Range River was now offering Firestone shareholders 1.25 of its own shares for every two Firestone shares held, up from its initial offer of one of its own shares for every two Firestone shares held when it first launched the hostile takeover bid at the end of last year.
In an updated independent expert’s report, released on Thursday, Deloitte Corporate Finance stood by its initial assessment that the proposed takeover by Range River was “neither fair nor reasonable” to Firestone shareholders.
“We have considered the new information and have completed our analysis of the effect of the new information on our opinion. Our opinion has not changed ... ,” said Deloitte director Nicki Ivory.
Firestone renewed its recommendation that shareholders reject the offer.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation