PERTH (miningweekly.com) – ASX-listed Emerald Resources has extended its takeover offer for unlisted Bullseye Mining as it awaits consent from the Takeovers Panel.
The Takeovers Panel in early January received an application from Hongkong Xinhe International Investment Company to halt the proposed bid, with Hongkong Xinhe claiming that both the bidder and target’s statements were deficient, and prevented Bullseye shareholders from making a properly informed decision in relation to the offer, while also calling into question Emerald’s pre-bid acquisition, as well as its acquisition of Bullseye director interest in the takeover target.
The company also claims that Emerald failed in its continuous disclosure obligations under ASX rules, after failing to disclose the execution of a bid implementation agreement between November 29 and December 7.
Emerald subsequently provided an undertaking to the Takeovers Panel that it would not take any steps to process acceptances of its takeover offer to Bullseye until receiving the Panel’s consent.
Under the offer, Bullseye shareholders will receive 1 new Emerald share for every 3.43 Bullseye shares held. The offer values Bullseye at approximately A$117-million, or A$0.30 per share, based on Emerald’s 30-day volume weighted average share price of A$1.03 a share on November 26.
Emerald has now extended the takeover offer until the close of business on February 11.