Gold Ramelius Resources’ sweetened takeover bid has won over fellow ASX-listed Explaurum, with the takeover target on Tuesday recommending that shareholders accept the offer.
Ramelius last week improved its offer by adding 2c a share in cash in addition to one of its own shares for every four Explaurum shares held.
The new offer valued Explaurum shares at 13.4c each and is a 57.6% premium to the last closing price of Explaurum shares, as well as an 11.7% premium to the subscription price of a transaction with ASX-listed Alkane Resources.
Explaurum has previously urged shareholders to reject the takeover offer from Ramelius in favour of a strategic investment by Alkane, which would see that company invest A$8-million in Explaurum for a 12.2% stake.
However, with prospects of shareholders approving the Alkane strategic investment being low, Explaurum and Alkane agreed to terminate the agreement in order for the improved Ramelius offer to be made unconditional.
Ramelius holds a 26.73% interest in Explaurum.