World Titanium Resources (ASX: WTR) has responded to Base Resources (ASX:BSE, AIM:BSE) unsolicited and conditional takeover offer.
Under the Offer, Base is offering one fully paid ordinary share in Base for every five fully paid ordinary shares in World Titanium.
World Titanium directors have said that they will provide further advice in due course, will adding to take no action.
JP Morgan Asset Management (UK) support
The offer is supported by World Titanium’s largest institutional shareholder, JP Morgan Asset Management (UK) Limited who holds 7.7%, while also entering into a pre-bid acceptance agreement with Base.
On the basis of the 1, 3 and 6 month volume weighted average prices of the shares traded in both companies on the ASX, the offer represents premiums of 118%, 98% and 56% respectively.
Conditions of the offer include:
- 40% minimum acceptance;
- World Titanium conducting its business in the ordinary course; and
- no “prescribed occurrences” happening.
In the offer is successful, Base will secure the Toliara Sands Project in Madagascar to complement its Kwale Project in Kenya.
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