PERTH (miningweekly.com) – Despite failing to gain shareholder support from ASX-listed Bauxite Resources for a proportional takeover offer for that company, suitor Mercantile Investment Company has remained committed to the offer.
Bauxite Resources on Friday told shareholders that it had received a notice of extension from Mercantile regarding its 9c a share for every two shares not already held by the company, despite Bauxite Resources shareholders vetoing the bid in March.
In its notice, Mercantile advised Bauxite Resources that it did not consider shareholders’ rejection of the bid as binding, and has now declared the bid unconditional, closing on May 21.
Bauxite Resources told its shareholders that it disagreed with Mercantile’s assessment of the issue, and have instructed its solicitors to obtain an opinion from an experienced commercial barrister, as a precautionary step.
Mercantile has previously said that should its offer for Bauxite Resources be successful, the company would cease all exploration activities currently being undertaken, and to divest of Bauxite Resources’ fixed assets, including two farming properties.