Alliance fields offtake from largest shareholder
PERTH (miningweekly.com) – Junior Alliance Resources on Tuesday urged shareholders not to take any action around a A$42-million takeover offer from its largest shareholder, Gandel Metals.
Gandel this week launched an 18c-a-share cash offer for Alliance Resources, in which it currently holds a 72% interest.
In its bidder’s statement, Gandel said that the offer price represented a 133% premium to Alliance’s net assets, and was 2.33 times the value of its net tangible assets, while also representing a 33.33% premium to Alliance’s closing price on February 21, when the takeover offer was first flagged.
The shareholder stated that irrespective of the outcome of the takeover offer, Gandel would seek to either have Alliance removed from the official ASX listing and to seek a listing on the National Stock Exchange or to have Alliance become an unlisted entity.
Gandel’s offer was subject to the company obtaining a 90% interest in Alliance, along with no prescribed occurrences.
Alliance urged shareholders not to take any action, stating that the company had established a takeovers response committee to consider the bidder’s statement, and would be commissioning an independent expert to advise on whether the offer was fair and reasonable.
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