Northern Star Resources has been knocked back in its $150 million bid to acquire a near-half stake in the East Kundana gold mine from its joint venture partners Tribune Resources and Rand Mining, which say the offer significantly undervalues the asset.
In ASX announcements released on December 31, Tribune and Rand both said their respective boards of directors viewed Northern Star’s bid as opportunistic, after the Takeovers Panel declared unacceptable circumstances against the company in September.
At the time, the Takeovers Panel said Tribune investors had not been provided information regarding the ownership of the company’s stock held by its three largest shareholders – Seychelles-registered Sierra Gold, Trans Global Capital and Rand Mining.
Tribune and Rand share several directors, including the same managing director in Anthony Billis, and operate out of the same office in South Perth.
In October, the Takeovers Panel ordered Rand Mining to sell off nearly all of its 26 per cent cross-shareholding in Tribune, an order which was subsequently put on hold pending an appeal.
Northern Star, which holds a 51 per cent stake in the East Kundana mine, presented its $149 million offer for the share it does not already own in November – comprising $112.5 million for Tribune’s stake in the mine and $37.5 million for Rand’s interest – pitching it as a fair and reasonable outcome for shareholders.
The acquisitive gold miner’s executive chairman, Bill Beament, told the ASX on New Years’ Eve neither Tribune’s or Rand’s board of directors, nor its financial adviser, engaged with it in response to the offer.
“Northern Star continues to believe its cash offer is a fair and sensible pathway for Tribune and Rand shareholders to unlock the value of their company’s interests in the EKJV,” Mr Beament said.
Meanwhile, for the second year running, Mr Beament sold a significant portion of Northern Star stock on New Years’ Eve, offloading 1 million shares at an average price of 9.8 cents.
Mr Beament sold 1 million shares in Northern Star for a $5.9 million payday on December 31, 2017.
