Zeta swoops on Bligh to combat Saracen’s Bundarra buy
PERTH (miningweekly.com) – The directors of ASX-listed Bligh Resources have urged shareholders not to take any action on a takeover offer from fellow-listed Zeta Resources.
Zeta on Wednesday launched a 3.5c all-cash takeover offer for Bligh, which could derail the A$8.5-million deal that gold miner Saracen Mineral Holdings struck in February to acquire the Bundarra gold project, in Western Australia.
Zeta, which already holds a 19.9% stake in Bligh, has said that the takeover offer provided Bligh shareholders an opportunity to dispose of their interest in the company before its main undertaking was sold to Saracen, after which Bligh shareholders would likely face holding shares in an entity with no material assets and an uncertain future.
Zeta pointed out on Wednesday that the sale price for the Bundarra project to Saracen implied a value of 3.8c a share to Bligh shares; however, the company noted that this was based on the 15-day volume-weighted average price of Saracen shares prior to the execution of a sale agreement.
Based on the company’s last closing price on the ASX on Tuesday, the offer implied a price of about 3.2c a share, which Zeta said was lower than its own offer price.
The Zeta offer is subject to a number of conditions, including the withdrawal of the Bundarra sale offer and Zeta obtaining a relevant interest in Blight of 50%.
The Bligh board told shareholders that the company would evaluate the offer and would provide a recommendation in due course; however, until then, shareholders have been advised not to take any action.
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