PERTH (miningweekly.com) – Takeover target Breaker Resources has urged shareholders to accept an offer from gold miner Ramelius Resources, in the absence of a superior proposal.
Under the terms of the all-scrip off-market takeover offer, Breaker shareholders would receive one Ramelius share for every 2.82 Breaker shares held, valuing the offer price at 40c a share, representing a 41% premium to Breaker’s three-day volume weighted average share price (VWAP), and a 41.5% premium to the company’s 30-day VWAP.
In its target statement, Breaker noted that the agreement with Ramelius was a "sensible and complementary regional consolidation" and would bring the company’s Lake Roe gold project together with the Rebecca gold project, which is wholly owned by Ramelius.
“Breaker shareholders lose nothing in the share swap, but rather diversify their interests from owning part of a single undeveloped asset to become part of a larger and diversified gold producer which already exists as a profitable top 10 Australian domestic gold producer,” the company said.
The takeover offer is subject to a number of conditions, including a 50.1% minimum acceptance condition.
The takeover offer is set to close on May 1, unless extended.