Fitzroy makes a play for Royalco
PERTH (miningweekly.com) – ASX-listed junior Fitzroy River Corporation has announced plans to make an off-market takeover offer for fellow-listed Royalco Resources.
The company on Thursday said that it would offer 24c in cash for each Royalco share not currently owned, valuing the takeover target at A$12.65-million.
Fitzroy currently holds a 47.76% interest in Royalco, placing a value of around A$6.61-million on the remaining shares in Royalco, which is held by three substantial shareholders that control a combined 45.11% interest in the company, as well as some 160 smaller shareholders.
“Fitzroy’s offer represents a 20% premium to Royalco’s three- and six-month volume weighted average price, and provides Royalco shareholders with a liquidity event to sell all their shares, compared to the infrequent and low volume trades of Royalco shares on ASX,” said Fitzroy chairperson Malcolm McComas.
Royalco has urged shareholders not to take any action, with the company having appointed an independent expert to review the report.
Royalco holds a portfolio of royalties with interests in Victoria, New South Wales, South Australia, Queensland, New Zealand and the Philippines.
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