Emerging gold producer Zenith recommends shareholders accept Forrestania takeover offer
ASX-listed Zenith Minerals has recommended that shareholders accept a takeover offer made by fellow-listed Forrestania Resources, in the absence of a superior offer.
The takeover offer consideration is one new Forrestania share for every 4.3 Zenith shares.
As the takeover offer is an off-market takeover bid, there is no shareholder vote, however, Zenith shareholders who wish to receive the takeover offer consideration must accept the takeover offer before it closes. Acceptance is therefore required to receive new Forrestania shares on or before July 31.
Zenith shareholders who do not accept the takeover offer before it closes will not receive the takeover offer consideration and will remain shareholders in Zenith.
Each Zenith director has accepted the takeover offer in respect of all shares under their control. The directors hold a relevant interest of about 4.51% of Zenith's total share capital on an undiluted basis.
Based on the closing sale price of Forrestania's shares on ASX on July 7 of $0.405, the implied value of the takeover offer consideration is $0.094 per Zenith share and represents a 4.4% premium to the last closing price of $0.09 per Zenith share on June 5.
The deal will ensure Zenith shareholders gain exposure to a larger and more diversified gold company with near-term production cashflow, a stronger balance sheet and enhanced capacity to fund the advancement of Zenith's assets, including the consolidated Dulcie gold project.
Forrestania is transitioning to production with two complementary gold hubs at the Edna May gold project and the Lake Johnston project.
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