Gold Road declines to lift Apollo bid

Gold Road Resources says it won’t increase its all-cash offer for Apollo Consolidated after being outbid last week, but has left the door open with respect to its 19.9 per cent shareholding in the Western Australian explorer.

This morning, Gold Road said its unconditional off-market proposal for West Perth-based Apollo would remain at 56 cents per share, valuing the target at $166 million.

A competing bid from Ramelius Resources values Apollo at about $180 million.

That was after Ramelius increased the share portion of its offer last week, from 0.1375 Ramelius shares to 0.1778, while keeping the cash component at 34 cents.

Its offer implies a purchase price of 62 cents (up from 52 cents) and is scheduled to close on December 1.

Apollo’s board and a “substantial shareholder” have already accepted the revised bid, lifting Ramelius’ stake in the target to 19.9 per cent.

Gold Road, which also owns 19.9 per cent of Apollo’s issued capital, said it had not yet made a decision as to whether it will accept the improved Ramelius offer or sell its shares.

A supplementary bidder’s statement has been lodged with the Australian Securities and Investments Commission and will be dispatched to Apollo shareholders, along with Gold Road’s original bidder’s statement, in due course.

Gold Road’s offer is scheduled to close on December 8.

The company was trading 2.2 per cent higher at 1pm AEDT to $1.41 per share.

Ramelius’ shares were unchanged, trading at $1.64, while Apollo’s shares were down 4.6 per cent to 62 cents.