Norton Gold Fields is poised to succeed in its Bullabulling Gold takeover bid after the Perth explorer begrudgingly accepted the increased takeover offer of 8 cents per share.
In June, Bullabulling advised its shareholders to reject Norton’s increased takeover offer, up from 7 cents per share, to obtain a 30 per cent interest in the company, after independent experts valued its shares at between 11 and 16 cents per share.
However Norton received a number of acceptances since July 1, including from Bullabulling’s two major shareholders, which put Norton’s interest in Bullabulling up from 17 per cent to 41.35 per cent.
As a result, Bullabulling yesterday changed its recommendation and advised that its shareholders should accept the offer in the absence of a superior offer.
Bullabulling said that it remained of the view that Norton’s increased offer undervalued the company, however with the company’s new voting power there would be a highly unlikely chance that any resolutions could be passed at a meeting of shareholders without Norton’s support, or that any resolutions proposed by Norton could be defeated.
Norton’s effective control of Bullabulling will put it in a position to largely control the management and board composition of Bullabulling, the timing of any future development of the company’s gold project and the method and source of funding for the further advancement of the project.
Norton has declared that the increased offer of 8 cents per Bullabulling share remains its best and final offer and cannot be increased.
Bullabulling said despite best efforts, there have been no alternative or better offers presented.
The offer is scheduled to close on July 16.
Bullabulling last traded at 8 cents per share at 2:45pm WST.
