LinQ Resources Fund has accepted an off-market takeover bid from Singapore-based investment house IMC Resources that values the target at around $80 million.
IMC, which hold s a 17.5 per cent stake in LinQ, has offered 70 cent cash for each LinQ share, a 39 per cent premium to the fund's last closing share price.
At 1:50PM, LinQ shares were up 33.6 per cent, trading at 67.5 cents.
LinQ's board of directors has unanimously recommended shareholders accept the offer after announcing a bid implementation agreement today.
"the offer provides all unit holders with the opportunity to sell their entire holding in the fund at an attractive price, and in a timely manner, which we consider to be particularly attractive given the prevailing challenging equity market conditions," chairman Bruno Camarri said.
"The board has previously investigated a range of measures to assist in closing the gap between the market price of LRF units and the underlying NTA of the fund, and this resulted in a proposal to de-list the fund.
"However the board considers that the liquidity provided by the offer represents a superior outcome to the de-listing proposal and we are pleased to have the opportunity to recommend it to you."
LinQ is being advised by Gresham Advisory Partners and Freehills.