Goldfields Money rejects increased Firstmac offer

The board of Kalgoorlie-based bank Goldfields Money has knocked back a fresh takeover bid from Brisbane financial business Firstmac Holdings, which valued the company at $1.27 per share.

The increased bid comes just weeks after Firstmac launched an initial takeover offer at $1.12 per share, which was also rejected by Goldfields’ board.

The latest offer implies Goldfields is worth $28.6 million, and is about 5 per cent higher than the company’s closing price today of $1.21 per share.

Firstmac reported a 14.99 per cent stake in Goldfields at the time of the original bid, and still holds the same slice of the business, according to its updated statement today.

The Goldfields board knocked back the new offer on the basis that it was at the low end of a fair valuation range and other proposals could still flow through.

“The board is continuing to progress discussions with several counterparties with a view to there potentially being an alternative superior proposal to the increased Firstmac offer,” the board said in a statement today.

“While no assurance can be made as to the outcome of this process, the directors consider there is currently a prospect of a superior proposal to the increased Firstmac offer being made.

“Should this change shareholders will be advised.

“The increased Firstmac offer is at the bottom end of the $1.27 to $1.39 value per share range determined by the independent expert, EY transaction advisory services.”

In its supplementary bidder’s statement today, Firstmac said the updated offer was a 27 per cent premium to Goldfields’ trading price at closing on the day prior to the launch of the initial bid.

“The increased offer price of $1.27 per Goldfields money share is within the range of assessed values as determined by the independent expert (EY),” the statement said.

“Firstmac Holdings considers that the increased offer price provides a compelling premium and certain cash value to Goldfields Money shareholders.”

Patersons Securities is acting as broker for Firstmac, while King & Wood Mallesons is the legal adviser for the bid.

Name change

The Goldfields board hasn't had shareholder support on every recent move, however.

A resolution to change the company's name to Bare Money hit a wall at the company's annual general meeting in October.

The motion secured support of 72.9 per cent of shareholders, painfully short of the 75 per cent threshold needed for approval.