Photo by: Bloombeg
PERTH (miningweekly.com) – Takeover target Phoenix Gold has thrown its weight behind a revised takeover offer from Evolution Mining, advising shareholders to accept the offer.
Following discussions between the parties and Evolution’s ever-increasing shareholding in the company, the Phoenix board has now unanimously recommended the revised takeover offer.
Evolution had initially offered 6c in cash and 0.06 of its own shares for every Phoenix share held, with the takeover offer being subject to a limited number of customary conditions, as well as the gold price not falling below A$1 250/oz.
The revised offer would see Phoenix shareholders receive 6.75c a share and 0.06 of an Evolution share for each Phoenix share held. The offer was subject to Evolution obtaining an interest of 90%.
Phoenix said on Friday that the revised offer added certainty of value to the company’s shareholders and that the total consideration valued the revised offer at 15.8c a Phoenix share, based on the 20-day volume weighted average price of Evolution’s shares.
The new offer price represented a 60.8% premium to Phoenix’s closing price on June 19, when an original takeover offer was launched by Chinese major Zijin Mining. The offer was also a 57.6% premium to Zijin’s offer of 10c a share in cash.
“I am pleased to advise our shareholders that we have reached an agreement with Evolution that, we believe, offers Phoenix shareholders the best possible outcome in the current circumstances,” said Phoenix executive chairperson Dale Rogers.
“As we have stated in the past, we have a great deal of respect for the team at Evolution and look forward to becoming shareholders in the company.”
The offer period had been extended to December 15.