Theta's play for Focus hits a hurdle
PERTH (miningweekly.com) – Takeover target Focus Mineral’s largest shareholder, Shandong Gold International Mining Corporation, has confirmed that it would reject a takeover offer from ASX-listed Theta Gold Mines.
Theta earlier this week announced that it would waive conditions to its takeover offer for Focus, launched last year, issuing a replacement bidder’s statement. The waive related to Focus undertaking a one-for-one non-renounceable entitlement offer at the end of last year, raising A$25.5-million.
Theta Gold Mines is offering two of its own shares for every one Focus share held. The offer valued Focus shares at 36c each, representing a 41.2% premium to the company’s closing price on December 8.
Shandong Gold had previously advised Focus that it would not accept the offer from Theta Gold Mines, and has now provided the takeover target with a written affirmation that it would reject the Theta Gold Mines offer, despite the replacement bidder’s statement.
Shandong Gold holds a 63.18% interest in Focus, and as a result of its reluctance to part with its shareholding, Theta Gold Mine’s takeover offer is unlikely to succeed in its current form, Focus said.
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