07/07/2009 - 09:11

Dioro asseses Avoca's sweetened offer

07/07/2009 - 09:11

Bookmark

Save articles for future reference.

Takeover target Dioro Exploration has urged its shareholders to take no action on a sweetened $71 million takeover bid by Avoca Resources.

Takeover target Dioro Exploration has urged its shareholders to take no action on a sweetened $71 million takeover bid by Avoca Resources.

The directors of Dioro told shareholders in a statement that it will review the supplementary bidder's statement and then make a recommendation. So far Dioro has told shareholders to reject Avoca's offer.

Yesterday, Avoca increases its all-scrip offer of one of its shares for every 2.4 Dioro shares, up from 2.82 shares.

The increase now valued Dioro at around $71 million based on Avoca's share price last week.

Today, Dioro also pointed out that since Avoca opened its offer in May, the suitor had so far received less than 1 per cent of acceptances from Dioro's general shareholders.

At the start of the takeover, Avoca had secured a collective 14.95 per cent from two major Dioro shareholders.

In total, Avoca has a 15.79 per cent relevant interest in Dioro.

Shares in Dioro were down one cent to 71c while shares in Avoca slipped 3.5c to $1.705.

Both companies operate gold mines in Western Australia.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options