PERTH (miningweekly.com) – Canada-based Kedalion Nickel’s recommended takeover offer for ASX-listed Cannon Resources has been declared unconditional.
Cannon on Tuesday urged its remaining shareholders to accept the 45c-a-share cash offer from Kandelion, which is scheduled to close on December 21, unless extended.
As of the end of trade on Monday, Kandelion held a 33.24% interest in Cannon, including acceptances from all of the company’s board of directors as well as its largest shareholder Panderosa Investments, which held 15% of Cannon’s shares on issue.
Cannon previously said that the cash offer provided shareholders with certainty of value for their shares in the company, and the ability to realise value in what was, prior to the offer, an illiquid company. Cannon also noted that in the month prior to the offer, less than A$1-million worth of Cannon shares were traded on the ASX, compared with the offer value of A$45-million.
Furthermore, the cash offer also represented a 43% premium to Cannon’s last closing price and a 58% premium to the company’s 30-day volume weighted average share price, while mitigating the risks and uncertainties of remaining a Cannon shareholder, including near-term capital requirements and project development and technical risks.