PERTH (miningweekly.com) – ASX-listed Base Resources on Thursday conceded that its offer for fellow-listed World Titanium Resources was unlikely to succeed, but the miner stuck to its guns, refusing to increase its bidding price.
Earlier this month, the directors of World Titanium advised shareholders to reject the takeover from Base, with the company stating that the offer price was lower than the market value of World Titanium shares.
Base is offering one of its own shares for every five World Titanium shares held, and based on the closing price of Base shares on December 22, the offer represented a value of 4c a World Titanium share.
Base said on Thursday that following discussions with key World Titanium shareholders, with the takeover target also securing binding undertakings from shareholders holding more than 60% of the company to not accept the offer, the company reached the conclusion that the offer was unlikely to succeed unless there was a significant change in circumstances.
However, Base said that it would not be increasing its offer for World Titanium, and would not extend the offer period past February 6.
The offer was subject to a number of conditions, including a 40% acceptance condition.
With the acquisition of World Titanium, Base was hoping to gain ownership of the Toliara Sands project, in Madagascar, effectively extending the company’s mineral sands interests and diversifying its project and geographical risk profiles.