Takeover target Alto Metals has a new suitor – privately owned investor Habrok Mining.
The Western Australia-based gold explorer said on Friday that it had received a proposal from Habrok to make an offmarket takeover offer of 6.6c a share.
The intended offer beats the 6.5c-a-share offer that Alto recommended shareholders accept from Goldsea Australia Mining.
The offer would also be on an unconditional basis and thus not conditional on due diligence, financing, regulator approval or further approvals.
“We assume that the Alto board will withdraw its recommendation in respect of the Goldsea share offer and the statements of intent by the Alto board to accept the Gold share offer in the absence of a superior proposal,” Habrok director Simon Raftery said in a letter to Alto Metals chairperson Richard Monti.
He noted that Habrok would lodge its bidder’s statement over the “coming weeks” and that it would look to discuss with Alto an accelerated timetable for the dispatch of the bidder’s statement.
Habrok on Friday acquired a relevant interest of 12.04% in Alto as “an indication of its commitment”.
Alto directors advised shareholders not to take any action yet.
Alto’s share price closed 1.59% lower at 6.2c a share on Friday.