Danakali warns about 'vulture' share purchase offers
ASX-listed Danakali has warned shareholders to be cautious about accepting offmarket offers for their shares, noting that it has become aware of predatory activity by parties offering shareholders less than 10% of the value of their shares.
Danakali has received reports of offers as low as 1c a share, compared with the current cash backing of about 10.5c a share – or less than 10% of the underlying cash value of the shares.
Executive chairperson Seamus Cornelius said the current suspension of the company’s shares from ASX trading was “no excuse for the predatory behaviour”.
“It’s not acceptable, we are monitoring it closely and we’re advising shareholders who’ve approached us having received these offers to take professional advice,” said Cornelius.
“From what we can ascertain, most of the activity has originated offshore and potentially beyond the reach of Australian regulators. Any shareholder who has received such an offer should contact Danakali directly.”
Cornelius said Danakali continued to work on initiatives to acquire new projects and provide shareholders with liquidity options while the company secures the most efficient way to recommence trading on the ASX.
Danakali last year sold its flagship Colluli potash project, in Eritrea, to a Chinese buyer.
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