PERTH (miningweekly.com) – The directors of takeover target Finders Resources have advised shareholders to consider accepting the offer from suitor Eastern Field Development, after that company obtained a more than 60% interest in the ASX-listed company.
Finders told shareholders that while the independent directors of the company still considered the 23c-a-share offer to not be reflective of the fair value for Finders shares, Eastern Field now had a controlling interest in the company.
Eastern Field has also declared that it would not increase its offer price.
The offer is due to close on March 30, and Finders’ remaining shareholders have been urged to accept the takeover offer.
“Although the independent directors are disappointed and believe the offer price does not reflect the fair value for Finders shareholders, the fact that Eastern Field now has a controlling interest in the company means shareholders should seriously consider accepting the offer before it closes,” said Finders MD Barry Cahill.
“There are significant risks associated with being a minority shareholder and we would urge all Finders shareholders to carefully consider those risks now, in order to leave sufficient time to accept the offer if they wish to do so.”