Tietto board revises recommendation

Matt Wilcox-backed Tietto Minerals has revised its recommendation to shareholders regarding a potential takeover from Hong Kong-based Zhaojin Capital.

Since its initial bid 58 cents per share for shares in the company, worth $650 million, that it didn’t already own in October last year, Tietto’s board has advised shareholders to take no action and reject Zhaojin’s offer.

However on Tuesday, Tietto directors unanimously said shareholders should consider accepting Zhaojin’s best and final offer of 68 cents per share, tabled on April 15, given it now holds a 42.51 per cent stake in Tietto.

The company said Zhaojin’s increased stake now provided an opportunity for it to control the composition of Tietto’s board – and in doing so, effectively oversee the company’s operational and financial affairs.

Despite its revised recommendation, Tietto directors made it clear they still believe Zhaojin’s offer undervalues the company and it was opportunistically timed.

Tietto last traded at 67 cents per share, down 1 per cent, as of 12.40pm WST.