PERTH (miningweekly.com) – ASX-listed Crusader Resources went into a trading halt on Thursday as the company considers its options after shareholders of Aim-listed Stratex International vetoed a takeover offer.
Stratex and Crusader entered into a heads of agreement to merge in May this year and inked a binding agreement in June.
Under the terms of the agreement, Stratex would have purchased Crusader in an all-scrip transaction, which valued the company at A$54-million. Stratex offered 6.6 common shares for each Crusader share, which would have left the Australian company with an 81% interest in the combined company.
However, a number of Stratex shareholders called a general meeting of the company, in the hopes of terminating the proposed transaction, as well as making a number of board changes.
The meeting was held on Wednesday, and resulted not only in the termination of the Crusader transaction, but also in the removal of Stratex CEO Marcus Engelbrecht.
Stratex said that David Hall and Paul Foord, who form part of the requisition group, had proposed a possible merger of Thani Stratex and the company. The merger proposal may constitute a reverse takeover.
Crusader told shareholders on Thursday that it was seeking advice on the implications of the meeting, and was assessing its options and the potential impact of a termination of the merger.