19/04/2017 - 13:09

Zeta makes $8m play for Bligh

19/04/2017 - 13:09

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Investment group Zeta Resources has announced plans to make an all-cash takeover offer for gold-focused Bligh Resources, competing with Saracen Mineral Holdings which had agreed to buy the target’s core asset in February.

Zeta makes $8m play for Bligh
Bligh Resources' Bundarra gold project near Leonora.

Investment group Zeta Resources has announced plans to make an all-cash takeover offer for gold-focused Bligh Resources, competing with Saracen Mineral Holdings which had agreed to buy the target’s core asset in February.

Zeta said it would acquire all the shares it didn’t already own in Bligh for 3.5 cents each, a premium of 9.4 per cent to Bligh’s last closing price and implying an equity value of $8.1 million for the target.

Zeta holds a 19.9 per cent stake in Bligh.

The offer is subject to Bligh cancelling plans to sell its Bundarra gold project near Leonora to Perth-based Saracen for $8.5 million in scrip, which Zeta argued would leave Bligh shareholders with no material assets and an uncertain future.

“The sale price of the Bundarra project to Saracen implies a price per Bligh share of about 3.8 cents, however this was based on the 15 day VWAP of Saracen shares prior to execution of the sale agreement of $1.19,” Zeta said in a statement.

“Based on the last Saracen share price on the ASX on the day before this announcement of $1.04, this implies a price per Bligh share of about 3.2 cents, which is lower than (our) offer price.”

In a brief statement, Bligh’s board told shareholders to take no action in respect of Zeta’s offer until it has evaluated it, and provided shareholders with a recommendation.

Zeta shares were unchanged at 40 cents each at 1pm, while Bligh shares were 6.2 per cent higher at 3.4 cents each.

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