Ibaera Capital lifts bid for Azumah
Business News, Mark Beyer, Monday, 28 October 2019, © Copyright 2019 Business News Pty Ltd.
Azumah Resources' firm rejection of Ibaera Capital's initial takeover offer has paid dividends, with the private equity group agreeing to increase its offer for the West Perth-based miner.
Ibaera has lifted its cash offer price from 2.8 cents per share to 3.3 cents per share.
Azumah's directors have unanimously recommended that shareholders accept the improved offer.
Azumah said the higher price represents a compelling premium, as it is 136 per cent above its closing share price prior to the announcement of the original offer.
It is also at a premium to the implied value of Azumah shares represented by the recent minority interest transaction between Azumah and Ibaera for the Wa gold project.
Azumah chairman Michael Atkins said it was a good result.
"The Increased offer price and consequent premium paid to Azumah shareholders is one we believe to be a fair recognition of both Azumah and Ibaera's respective control over the development of the Wa gold project through the existing joint venture arrangements, particularly where key decisions over future progress require the unanimous agreement of both parties," he said in a statement.
"We recognise that some shareholders may have preferred to realise the ultimate vision of successfully bringing the Wa gold project into production but after balancing the increased price now on offer for Azumah shares against the inherent future risks of successfully completing financing, construction and entering into steady state production, as a board we unanimously believe that accepting the Increased offer is the best path forward for shareholders."
Azumah was advised by Azure Capital and law firm Corrs Chambers Westgarth.