06/12/2019 - 14:12

Azumah urges shareholders to accept offer before Xmas

06/12/2019 - 14:12

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Azumah Resources has released a statement confirming that all independent company directors are now unanimously recommending shareholders accept private equity firm, Ibaera Capital’s, 3.3 cents a share takeover offer. Ibaera now has a relevant interest in 83% of Azumah’s shares with all Azumah directors and major shareholders now accepting Ibaera’s offer, sidestepping the problematic scenario of becoming a minority shareholder in an unlisted company.

Azumah Resources independent directors have recommended that its remaining shareholders accept private equity firm, Ibaera Capital’s, 3.3 cents a share offer. Ibera now has a relevant interest in 83% of Azumah’s shares with all Azumah directors and major shareholders now accepting Ibarea’s offer.

If Ibaera acquires 90% or more of Azumah, shareholders that have not accepted the offer before the 17th December can have their Azumah shares compulsorily acquired under Australian corporations law.

 

Ibera has previously declared that the 3.3 cents per Azumah share offer as final and representing a 136% premium to the company’s closing price before the original offer was made in September and an 18% premium to the 2.8c per share offer made by Ibaera at that time.

Ibaera and Azumah have urged remaining shareholders to accept the revised offer saying that there were risks associated with small shareholders remaining on an illiquid register.

In particular, Azumah said that Ibaera may seek to delist the company, which means that any remaining shareholders would lose the opportunity to trade their shares on the open market and the protections and transparencies that usually come with a public company would potentially be reduced.  

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

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