29/10/2015 - 15:10

Atherton accepts $56m takeover offer

29/10/2015 - 15:10

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Private equity group Auctus Chillagoe looks set to gain control of Atherton Resources, after major shareholders said they would vote in favour of the improved $56 million offer.

Atherton accepts $56m takeover offer
Auctus chairman Steve Murdoch.

Private equity group Auctus Chillagoe looks set to gain control of Atherton Resources, after major shareholders said they would vote in favour of the improved $56 million offer.

Atherton (formerly known as Mungana Goldmines) advised the market today that its two major shareholders, Kagara and Mungana, will be accepting Auctus’s offer, which values the company at 20 cents per share.

Kagara and Mungana hold a combined 67.5 per cent stake in Atherton but are currently in liquidation, and are controlled by FTI Consulting.

“The majority of your directors recommend that shareholders now accept the offer in respect of all of their shares prior to the close of the offer,” Atherton said in a statement.

“Each director who has a relevant interest in shares intends to act in accordance with the recommendation in respect of the shares they hold.

“Atherton also confirms that it has currently not received a superior offer from another party.”

Auctus, which is backed by global private equity group Denham Capital, now holds valid acceptances totalling 77.3 per cent of Atherton’s shares on issue, and now has a controlling interest in Atherton.

Auctus has made several attempts at taking control of Atherton; the first time shareholders rejected a 13.5 cents per share offer in June, and then turned down a 17 cents per share offer in July.

Auctus, which is chaired by former Karara Mining boss Steve Murdoch, will own Atherton’s Chillagoe zinc-copper project in Queensland.

Atherton shares were unchanged at 20 cents each at the close.

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