Nedlands-based explorer Bullabulling Gold has advised its shareholders to reject Norton Gold Fields’ increased takeover offer of 8 cents per share to obtain a 30 per cent interest in the company.
After independent experts valued the company’s shares at between 11.1 cents and 16.1 cents per share, Bullabulling concluded that the consideration was inadequate and opportunistic, and urged shareholders to take no action on the offer.
Norton, already holding a 17.3 per cent interest in Bullabulling, has confirmed that the conditional increased offer price is its best and final offer and won’t be increased any further.
The offer has received limited traction with Bullabulling shareholders since it opened six weeks ago at 7 cents per share.
If Norton doesn’t obtain a relevant interest in 30 per cent or more of the company by 30 June 2014, the original offer price of seven cents per share will continue to apply.
Bullabulling's share price rose by 5.63 per cent to 7.5 cents at 1:25pm WST.