Phoenix Gold's (ASX:PXG) directors have unanimously recommended that shareholders reject the takeover offer from major shareholder Zijin Mining Group Co., Ltd (SHA:601899, HKG:2899).
The Board said Zijin’s $0.10 offer was inadequate and does not reflect fair value. Shares in Phoenix last changed hands at $0.13, or 30% higher than the Zijin offer.
The Independent Expert values a Phoenix share at between $0.156 and $0.244.
Dale Rogers, chairman for Phoenix, commented: “The directors consider that the Zijin Offer does not reflect the inherent value of Phoenix and is designed to secure opportunistic control.
"If Zijin were successful they would capture value that the Board believes rightly belongs to all our shareholders.”
Evolution Mining also bidding
Evolution Mining (ASX:EVN) has previously announced its intention to make a competing offer at a headline price of $0.12 per Phoenix Share, representing a 20% premium to the Zijin Offer.
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