Phoenix Gold (ASX:PXG) directors have unanimously recommended that shareholders reject the takeover offer from its largest shareholder Evolution Mining.
The board said its offer of 0.06 Evolution shares and $0.06 cash, at a headline price of $0.12 per Phoenix share, or $0.1294 at EVN’s 20-day VWAP, was inadequate and does not reflect fair value.
An independent expert recently valued a Phoenix share at between $0.156 and $0.244 for the purpose of assessing the recent offer from Zijin Mining Group Co., Ltd (SHA:601899, HKG:2899), which was also rejected.
Dale Rogers, executive chairman for Phoenix, commented:
“The directors consider that the Evolution Offer is inadequate and does not provide sufficient consideration to Phoenix shareholders, particularly in the context of the strategic benefits the Phoenix assets offer to Evolution and its recently acquired Mungari Operations.”
Discussions are continuing with Evolution with respect to the adequacy of the offer.
The company noted that should Evolution receive a large number of early acceptances, its ability to successfully conclude discussions may be impacted.
Evolution has not stated that the offer is final and will not be increased.
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