PERTH (miningweekly.com) – Gold producer Westgold Resources on Friday told shareholders of fellow listed Gascoyne Resources that it would expedite documents for a takeover offer.
Westgold at the end of September flagged an off-market takeover offer for Gascoyne, under which it was proposing to offer one of its own shares for every four Gascoyne shares held.
The proposed takeover offer from Westgold would be subject to the merger between Gascoyne and fellow-listed Firefly Resources, not proceeding, as well as a more than 50.1% minimum acceptance condition.
Gascoyne at the end of September said that it had not received a bidder’s statement from Westgold, urging shareholders not to take any action.
“It has been more than a week since Westgold announced its intention to make a bid on terms that are far superior to Gascoyne’s proposed merger with Firefly. Bemusingly, the Gascoyne board has provided no guidance to Gascoyne’s shareholders nor to Westgold regarding the board’s intentions on either the Firefly scheme or the Westgold offer,” said Westgold executive director Wayne Bramwell.
“The silence from the Gascoyne board in relation to our offer is in stark contrast with the volume of calls and emails we are receiving from Gascoyne shareholders wanting our offer to be considered by their board.
“Westgold knows the Gascoyne board is cognisant of its fiduciary duty to its shareholders and would expect the board to dutifully and proactively act to ensure their loyal shareholders have the opportunity to evaluate and respond to our value accretive proposition,” he added.
Westgold is expected to lodge its bidder’s statement to the Australian Securities and Investment Commission in the week starting October 10.