Range River offer ‘inadequate, opportunistic’ – Firestone
JOHANNESBURG (miningweekly.com) – Dual-listed Firestone Energy again on Monday advised its shareholders to reject the hostile takeover offer by ASX-listed Range River Gold.
In a statement to shareholders, Firestone CEO David Knox said the offer “remains inadequate, highly conditional and opportunistic”.
Range River was offering Firestone shareholders one of its own shares for every two Firestone shares held, which it said represented a 25% premium to the company’s closing price on December 13.
However, Firestone said on Monday that an independent expert, Deloitte Corporate Finance, had concluded that the takeover offer was unfair and unreasonable to shareholders and did not compensate Firestone shareholders for the strategic nature and inherent value of the coal miner’s assets.
“Range River’s offer has been timed opportunistically to coincide with the settlement of the Ariona transaction; designed to destabilise and distract Firestone; and transfer the value in Firestone to Range River at a time just prior to Firestone achieving critical milestone events,” Firestone noted.
The coal miner had, in recent weeks, requested several trading halts on the JSE and the ASX, as it continued to try to conclude a A$12.5-million investment agreement with Ariona.
Firestone also pointed out that the offer remained conditional on Range River acquiring Ariona Company, raising $10-million through an equity raising, raising $10-million through a convertible loan and securing $35-million of funding through a Standard Bank South Africa consortium.
Further, the company said Range River was paying a significantly higher price to black economic-empowerment partner, Sekoko Resources, to acquire its interest in Firestone.
In addition, Firestone believed the offer would dilute existing shareholders’ ownership in the company’s assets and may have adverse tax implications for Firestone shareholders.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation