PERTH (miningweekly.com) – South Africa-focused coal miner Firestone Energy has reiterated its advice to shareholders to reject a renewed offer by fellow-listed Range River to acquire all the shares in the ASX- and JSE-listed Firestone.
Range River launched a hostile takeover for Firestone at the end of last year, offering one of its own shares for every two Firestone shares held.
Firestone, at the time, told shareholders that the offer was inadequate and opportunistic, with an independent expert also declaring the offer unfair and unreasonable.
However, Range River on Monday upped the ante, offering Firestone shareholders 1.25 of its own shares for every two Firestone shares held.
Firestone told shareholders that, while it still considered the offer to be inadequate and opportunistic, it would seek advice from its independent expert. However, shareholders were still advised to reject the new offer.
The company noted that the new offer did not offer compensation for the strategic nature and inherent value of Firestone’s assets, and would dilute the company’s shareholding and effective ownership in their assets.
Furthermore, Firestone believed that the JSE provided better access to capital markets, more corporate credibility and better liquidity for shareholders than a singular listing on the ASX.