PERTH (miningweekly.com) – An independent expert has supported ASX-listed Mungana Goldmines’ decision not to accept a takeover offer from Auctus Chillagoe.
Auctus launched its 13.5c-a-share offer for all the issued shares in Mungana in April, arguing that the offer gave Mungana shareholders certainty of value and liquidity.
The offer was a 29% premium to the closing price of Mungana shares on April 28, and a 26% premium to the 30-day volume-weighted average price of Mungana shares for the period ended April 28.
The directors of Mungana had previously labelled the offer opportunistic, saying it materially undervalued the company and its assets.
An independent expert has agreed, saying the unsolicited takeover offer was neither fair, nor reasonable.
The independent expert had assessed that a fair market value for Mungana’s shares would be between 24.19c and 31.69c each. The expert warned that Mungana shareholders that accepted the Auctus offer would forgo the opportunity to participate in the potential near-term growth prospects offered by Mungana, and would receive less than fair market value for their shares.
Mungana had again recommended that shareholders reject the offer.