PERTH (miningweekly.com) – Gold miner Northern Star’s A$150-million cash bid for the remaining 49% stake in the East Kundana joint venture (JV) has been rejected by ASX-listed Tribune Resources and Rand Mining.
Northern Star in November last year made the all-cash offer after both Tribune and Rand faced a declaration of unacceptable circumstances from the Takeovers Panel in connection with past and ongoing breaches of the Corporations Act, with respect to nondisclosure of controlling shareholdings.
Northern Star, which holds an interest in both companies, said at the time that in light of the panel’s declaration, the company believed that the A$150-million offer for the Kundana JV interest was a fair and sensible outcome for the shareholders of Tribune and Rand.
The gold miner had offered Tribune A$112.5-million for its 36.75% interest in the JV, and A$37.5-million for Rand’s 12.25% interest.
Both Tribune and Rand this week said that the offer significantly undervalued their interest in the JV, with the offer considered to be opportunistic in light of the Takeovers Panel’s declaration.