04/09/2015 - 05:59

Phoenix rejects Zijin offer

04/09/2015 - 05:59

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Phoenix rejects Zijin offer

An independent expert’s report has put a minimum valuation on Phoenix Gold shares of 15.6 cents, well above the two competing takeover offers for the Kalgoorlie company.

The valuation was prepared by accounting firm BDO, which concluded that the 10 cents per share offer by China’s Zijin Mining Group was neither fair nor reasonable.

Sydney-based Evolution Mining has flagged a competing 12 cents per share offer but has not yet formally launched its takeover.

Therefore it has not been evaluated by BDO.

The Phoenix board announced yesterday that shareholders should reject Zijin’s takeover offer.

They cited the BDO report, which valued Phoenix scrip at between 15.6 cents and 24.4 cents.

The directors also said the offer does not fairly reflect the value of Phoenix’s assets.

Phoenix’s target’s statement was lodged with the ASX soon after Zijin issued a clarifying statement, explaining that it does not presently intend to lift its offer price but reserves the right to do so.

This followed reported comments by a Zijin executive in China suggesting the offer would not be increased.

Phoenix shares closed yesterday at 13 cents, their highest level since January.

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