PERTH (miningweekly.com) – The directors of takeover target Stanmore Coal have urged shareholders to accept a takeover offer from shareholder Golden Investment.
Golden Investment is offering Stanmore shareholders A$1 a share in cash for all of their shares held, and since launching its offer in April, the company’s interest in Stanmore has increased from just over 31% to 52.41%.
The on-market offer represented a 22% premium to Stanmore’s last closing price before the offer, and a 27.3% premium to the company’s 30-day volume weighted average share price to April 1.
Stanmore has urged shareholders to accept the offer, with an independent expert also concluding that the offer was fair and reasonable.
Stanmore earlier this week warned that its underlying earnings before interest, tax, depreciation and amortization (Ebitda) for the full 2020 will be impacted by the Covid-19 pandemic.
The miner has revised its underlying Ebitda expectations for the full year from between A$92-million and A$100-million to between A$80-million and A$85-million.