Troy Resources has extended its $188 million takeover offer for Azimuth Resources by two weeks, after failing to secure enough acceptances from existing shareholders to close the bid.
The all-scrip off-market offer was made in late March, with Troy offering one of its shares for every 5.695 Azimuth shares.
Today, Troy said it had received acceptances from shareholders holding 68.72 per cent of the shares in Azimuth.
The offer will now close on Friday July 12.
The gold miner said while a number of shareholders had indicated their support for the offer and intention to accept, they preferred to delay lodging their acceptance until closer to the end of the offer period.
“Unfortunately this creates a catch 22, as by not accepting the offer without delay those shareholders are making it harder for Troy to meet the 90 per cent acceptance threshold, thereby delaying a process which the board of Azimuth unanimously supports,” Troy said in a statement.
“Further delays will slow the merger process and prevent further allocation of funds to advance the exploration and development work on the Guyana properties.”
The company urged Azimuth shareholders to accept the offer as quickly as possible.
At 1:45PM, WST, Troy Resources shares were up nearly 1 per cent, at $2.23, while Azimuth’s stock was down just under 3 per cent, at 33 cents.
