26/04/2017 - 14:48

Bligh backs improved Zeta offer

26/04/2017 - 14:48

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Bligh Resources has recommended shareholders vote in favour of an improved takeover offer by Zeta Resources, having previously backed an acquisition proposal by Saracen Mineral Holdings for its Bundarra gold project.

Bligh backs improved Zeta offer
Bligh Resources' Bundarra gold project near Leonora.

Bligh Resources has recommended shareholders vote in favour of an improved takeover offer by Zeta Resources, having previously backed an acquisition proposal by Saracen Mineral Holdings for its Bundarra gold project.

Zeta last week offered Bligh 3.5 cents for every share it didn't already own in the business, but Bligh shareholders will vote next Wednesday on whether to accept Zeta’s increased offer of 3.8 cents, which was put forward to the target on Monday after Saracen increased its bid for the Bundarra project to $9 million.

Zeta’s revised offer implies a market capitalisation for Bligh of $8.8 million.

“Having regard to the increased Zeta offer in comparison to the Saracen transaction, including in respect of price, consideration, implied valuation per Bligh share, and the relative benefits and considerations set out in Bligh’s ASX announcement on Monday, the directors of the company consider that the increased Zeta offer is a superior proposal to the Saracen transaction,” Bligh said today.

“If the Saracen transaction is approved by Bligh shareholders, the Zeta offer will not proceed, as the condition ‘rejection of sale of Bundarra gold project’ will not be satisfied.

“Therefore, if Bligh shareholders wish to accept the Zeta offer they should vote against the Saracen transaction at the general meeting.”

Bligh had only recommended shareholders vote in favour of Saracen’s offer on Monday, before Zeta increased its offer.

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