Phoenix Gold's (ASX:PXG) board has resolved to unanimously recommend that shareholders accept the revised offer from Evolution Mining (ASX:EVN), in the absence of a superior proposal.
Dale Rogers, executive chairman of Phoenix, commented:
“On behalf of the board of Phoenix, I am pleased to advise our shareholders that we have reached an agreement with Evolution that, we believe, offers Phoenix shareholders the best possible outcome in the current circumstances.
The terms of the revised offer are as follows:
- Upon Evolution obtaining a relevant interest in 90% of Phoenix shares, or otherwise being entitled to pursue compulsory acquisition of all remaining shares, Phoenix shareholders, including those that have already accepted the Evolution offer will be entitled to receive an additional 0.75 cents for each Phoenix share they hold.
- The offer period will be extended to 7.00pm AEST on 15 December 2015, unless further extended.
Rogers added, "As we have stated in the past, we have a great deal of respect for the team at Evolution and look forward to becoming shareholders in the company.”
Jake Klein, executive chairman of Evolution, commented: “This is a good outcome for both Phoenix and Evolution and I look forward to welcoming Phoenix shareholders to the Evolution share register.”
Premium
- 60.8% premium to the Phoenix closing price on 19 June 2015, being the last trading price prior to the first takeover offer for the company.
Phoenix directors accepting offer
Each of the Phoenix directors who holds or controls Phoenix shares has also undertaken to accept the revised offer.
Additional details of the offer
Should Phoenix shareholders become entitled to the increased consideration, the aggregate consideration under the revised offer would be A$0.0675 cash and 0.06 Evolution shares for each Phoenix share.
The increased cash component adds certainty of value and the total consideration is now A$0.158 per Phoenix share.
Shares in Phoenix yesterday closed at A$0.14.
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