Focus rejects Theta bid
PERTH (miningweekly.com) – Takeover target Focus Minerals has urged shareholders to reject an off-market takeover offer from fellow-listed Theta Gold Mines.
Theta Gold Mines is offering two of its own shares for every one Focus share held. However, Focus’ largest shareholder, Shandong Gold, which holds a 63.18% interest in Focus, has previously confirmed that it would reject the takeover offer from Theta.
In rejecting the Theta bid, Focus told shareholders on Monday that Theta’s primary consideration, which comprised only shares in the suitor company, was "fundamentally unattractive", and that Focus had a strong platform and is executing on its strategy by progressing initiatives to drive value creation.
The company also noted that the Theta offer is "inadequate" and did not appropriately reflect the underlying value of Focus' strategic asset portfolio, and that the terms and conditions of the Theta offer would result in further material risks for any accepting Focus shareholders.
“Your directors note that Theta Gold Mines has opportunistically made its offer shortly following the announcement of Focus' (Coolgardie) resumption plan and its entitlement offer," executive chairperson Wanghong Yang said.
“Your directors believe that the offer represents an opportunistic attempt to secure benefits for Theta Gold Mines but not Focus shareholders. Importantly, since Theta Gold Mines announced its offer, Focus has completed its entitlement offer and raised approximately A$25.5-million of equity and has an additional $10-million of committed unsecured debt available to it.
“Your directors believe that you are an owner of a gold exploration company with substantial funding now in place and an attractive outlook as an independent company, including near-term development opportunities.”
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