Territory Resources chairman Andrew Simpson says Exxaro Resource's proposed $123 million takeover offer will rob shareholders of the opportunity to enjoy the spoils of the company's ongoing development.
Mr Simpson was revealed as the sole director opposing the proposed takeover by Exxaro in a target's statement released after the market closed yesterday evening.
He said he believed ongoing exposure to Territory within its existing corporate structure represented a better outcome than accepting Exxaro's 46 cents per share offer and ceasing to be a Territory shareholder.
Mr Simpson said he believed Territory was in a strong position as an existing iron ore miner with access to infrastructure, and that the iron ore market outlook remained robust.
"My views on the strengths of the company included access to outstanding infrastructure, an operating mine in a strategic location with significant geographical advantages delivering to the world's fastest growing market, strong iron ore prices, and now, most importantly, beneficiation capability providing the ability to achieve an increase in exploration targets."
The remaining directors unanimously recommended shareholders accept the offer, saying it represented a 64 per cent premium to Territory's last closing share price prior to the announcement of the offer.
"The cash offer provides all shareholders certain and attractive value for Territory shares, eliminating the risks and uncertainties of remaining a Territory shareholder," the target statement said.
At 12:02PM (WST) Territory shares had dipped 1 per cent, to trade at 46.5 cents.
